JAMB Accounting Past Questions & Answers - Page 132

656.

The issued share capital is the number of shares that are

A.

Authorized by share holders

B.

Shared among the directors

C.

Fully subscribed

D.

In the share certificate

Correct answer is C

Issued shares are the shares sold to and held by investors of a company. They consists of the shares that have been sold to the shareholders against cash or some other consideration.

658.

Which of the following is the capital reserve of a company?

A.

Share premium

B.

Retained profit

C.

Accumulated depreciation

D.

Loss on forfeited shares

Correct answer is A

A capital reserve is an account in the equity section of the balance sheet that can be used for contingencies or to offset capital losses. It is derived from the accumulated capital surplus of a company, created out of capital profit.

Capital Reserve is a type of profit that is earned on capital transactions - an example would be the profit arising from the forfeiture of shares, share premium, Capital Redemption Reserve or Debenture Redemption Reserve.

659.

The objective of departmental account is to

A.

Ascertain the cost of running the organization

B.

Ascertain the amount of profit or loss for each department

C.

Ascertain the amount of profits for losses for the enterprises

D.

Offset the loss of each treatment

Correct answer is B

To check out an interdepartmental performance.
To evaluate the performance of the department with the previous period result.
The gross profit of each department can ascertain.
Unprofitable departments will reveal.


 

660.

Department        K                    Y
Opening stock  #2,500          #800
Purchases   #120,000        #100,000
Sales         #180,000           #200,000
Salaries      #8,000             #30,000
Closing stock #3,000          #1,500
Rate expenses of #1,500 are apportioned in the ratio 1:2.

What is the net profit of Y?

A.

#52,000

B.

#68,300

C.

#68,800

D.

#69,300

Correct answer is C

opening stock            800         
purchase                 100,000     
                                100,800
less; closing stock   1500                          99,300

Salaries                                      30,000
Rates(1:2 of 1500= 1/3x1500)      500      30500 
                                                                   68,800