eZine · Nigerian exams

Principles of double entry

JAMB Financial Accounting topic guide with 3 practice questions.

What to revise

  • source documents
  • books of original entry
  • accounting equation
  • ledger and its classifications
  • trial balance
  • types and correction of errors
  • suspense account

You should be able to

  • identify various source documents and their uses
  • relate source documents to the various books of original entry
  • determine the effect of changes in elements of accounting equation
  • understand the role of double entry principles in treating financial transactions
  • extract a trial balance from ledger accounts
  • identify various types of errors and their corrections
  • correct errors using suspense account

From JAMB's Financial Accounting syllabus official. Full syllabus →

eZine's published bank has 21 questions on this topic (counted 29 October 2026).

Practice questions

Question 1 · Principles of double entry

The ledger that contains the personal accounts of credit customers is the

Show answer and explanation

Answer: A. sales ledger

Debtors' personal accounts are kept in the sales ledger. The purchases ledger holds creditors' accounts; the general ledger holds real and nominal accounts; a private ledger holds confidential accounts such as capital and drawings.

eZine practice question (original, teacher-reviewed)

Question 2 · Principles of double entry

A trial balance shows debit totals of ₦1,386,000 and credit totals of ₦1,428,000. To make it agree temporarily, a suspense account is opened with

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Answer: B. a debit balance of ₦42,000

The debit side is short by ₦1,428,000 − ₦1,386,000 = ₦42,000, so the suspense account must carry a debit balance of ₦42,000. A credit balance would widen the gap; the sum and half-difference figures have no meaning here.

eZine practice question (original, teacher-reviewed)

Question 3 · Principles of double entry

From the following balances of Uche Ventures, Port Harcourt, calculate the capital that makes the trial balance agree: Purchases ₦1,840,000; Debtors ₦420,000; Premises ₦2,500,000; Wages ₦360,000; Opening inventory ₦290,000; Sales ₦2,960,000; Creditors ₦310,000.

Show answer and explanation

Answer: D. ₦2,140,000

Debit total = ₦5,410,000; credit total before capital = ₦3,270,000. Capital (a credit) = ₦5,410,000 − ₦3,270,000 = ₦2,140,000. The distractors come from treating opening inventory or creditors on the wrong side, or quoting the debit total itself.

eZine practice question (original, teacher-reviewed)

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