JAMB Accounting Past Questions & Answers - Page 138

687.

Sales - #232,000
Opening stock - # 28,000
Purchases - #128,000
Carriage inwards - # 4,000
Carriage outwards - # 6,000
Closing stock - # 10,000
Discount received - # 18,000
Expenses - # 20,000

Calculate the gross profit.

A.

#100,000

B.

#86,000

C.

#82,000

D.

#76,000

Correct answer is A

sales                                                             232,000  
Add: disc. received                                        18,000               
opening stock                           28,000
+ purchase                               128,000
cost of gds. avail. for sale        156,000
Less:closing stock                    10,000
Cost of gds sold                       146,000      
Add Carriage inwards                4000            150000   
Gross profit                                                    100,000      
 

 

688.

The purchase of mattresses from Freehold enterprises by cheque amounted to #305,150. The correct entries for this transaction in the book of the buyer is to debit

A.

Sales account and credit bank account

B.

Purchases and credit bank account

C.

Cash and credit freehold

D.

Bank and credit freehold

Correct answer is B

In the book of the buyer, we debit stock or purchase account and credit bank

690.

i.) The amount of the imprest is the same from one organization to another
ii.) At the end of a fixed period, the petty cashier received a fixed sum of money.
iii.) At the end of a period, the petty cashier is reimbursed with the amount spent in that period.
iv The system is a method by which a measure of control is kept on petty cash expenses.

Which of the above is correct about the imprest system?

A.

i, ii and iii

B.

i, iii and iv

C.

i, ii and iv

D.

iii and iv

Correct answer is C

The basic characteristic of an imprest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.