JAMB Accounting Past Questions & Answers - Page 140

696.

July 1 - Started business with #10,500
July 31- Paid Agro machine x #6,000 owing them

The double entry for July 31 would be

A.

Debit Agromachinex and credit cash

B.

Debit equipment and credit Agromachinex

C.

Credit capital and debit cash

D.

Credit cash and debit purchases

Correct answer is A

No explanation has been provided for this answer.

697.

July 1 - Started business with #10,500
July 31- Paid Agromachinex #6,000 owing
them

The double entry for July 1 would be

A.

Debit capital and credit cash

B.

Credit cash and debit bank

C.

Debit cash and credit capital

D.

Debit purchases and credit cash

Correct answer is D

Starting a business with 10500 means the business owner must have bought good for resale with that amount of money. Therefore we will debit purchase/stock account and credit cash account

Note; capital (cash in this case) is the money used in started a business
Purchases in accounting are goods bought for resale.

698.

When the debit side total of an account, it means that the account has

A.

Been overdrawn

B.

Been understand

C.

Debit balance

D.

Credit balance

Correct answer is C

No explanation has been provided for this answer.

699.

Accounting information seeks to provide

A.

Permanent records for all transactions

B.

Analysis of accounts to trade debtors

C.

Audited reports on the accounts of a company

D.

Data about the employees of a company

Correct answer is A

Accounting is simply keeping of all business transaction records so as to help a business make informed decisions in future

 

700.

The power to appoint the Auditor General of the Federation is vested in the

 

A.

National Assembly

B.

President

C.

Judicial Service Commission

D.

Civil Service Commission

Correct answer is B

The Auditor General for the Federation is appointed by the President.