JAMB Accounting Past Questions & Answers - Page 104

Aminu and Sons credit purchases (Extract] as at February 1996.

Feb 1Credit balances 40, 000
Debit balances 1, 000
Feb 28 Purchases journal totals 500,000
Returns outwards journal totals 50,000
Cheques paid to suppliers 400,000
Promissory notes sent to suppliers 30,000
Credit balance in the purchases ledger set off against debit balances in the sales ledger 2000

The Total for the purchases ledger control account is

Appropriation Account

Kudu Wale 
Interest on capital 750 550
Salaries 800 600
Share of profits 3,300 3,300
Determine the net profit of the partnership.

The end result of governmental accounting procedure is to

Public sector accounting is based on

Which of the following are advantages of departmental accounts?
I. The department making the highest profit can be easily determined
II. The capital of the business can be calculated easily
III. Easy knowledge of the sources of funding 
IV. Encouragement of healthy rivalry among the various departments