JAMB Accounting Past Questions & Answers - Page 144

716.

Given:
Fixtures-#30,000
Debtors-#7,000
Stock- #8,000
Creditors-#3,000
Goodwill-#10,000

Determine the capital.

A.

#10,000

B.

#42,000

C.

#45,000

D.

#52,000

Correct answer is D

30,000 + 7000 + 8000 +10,000 = 55000

55,000 - 3000 = 52,000

 

717.

The excess revenue over expenditure is charged to

A.

Profit and loss

B.

Revenue account

C.

Accumulated fund

D.

Income and expenditure acccount

Correct answer is C

An accumulated fund is the capital fund of a nonprofit organization. Money is directed into the accumulated fund when revenues are greater than expenditures and there is a budgetary surplus.


 

718.

The main advantage of a departmental account is that its

A.

Expenses are shared

B.

Gross profit is computed

C.

Net profit is computed

D.

Balance sheet is obtained

Correct answer is B

The most significant advantages of departmental accounts are: Individual results of each department are known which helps to compare the performances among all the departments, i.e., the trading results can be compared. Departmental accounts help to understand or locate the success, failure, rates of profit, etc.

719.

Total production cost- #360,000
Factory overhead cost- #56,000
Selling price per unit- #120
Production volume 4000 units

Determine the value of prime cost.

A.

#416,000

B.

#304,000

C.

#240,000

D.

#184,000

Correct answer is B

Prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs and overheads.

360,000 - 56,000 = 304,000

720.

Total production cost- #360,000
Factory overhead cost- #56,000
Selling price per unit- #120
Production volume 4000 units

What is the total manufacturing profit?

A.

#64,000

B.

#120,000

C.

#360,000

D.

#480,000

Correct answer is B

selling price x production volume
120 x 4000 = 480,000

Total sales - cost of production

480,000 - 360,000 = 120,000 (profit)