JAMB Accounting Past Questions & Answers - Page 148

736.

Ibrahim, a micro business operator, sold 10 bags of sugar to Jide at a total cost of #12,000.
In the book of Ibrahim, the entry to record the transaction would be to debit

A.

Sugar account #12,000 and credit Jide #12,000

B.

Jide #12,000 and credit sales account #12,000

C.

Ibrahim #12,000 and credit Jide #12,000

D.

Sugar account #12,000 and credit Ibrahim #12,000

Correct answer is B

Debit cash paid by Jide to the sum of 12,000 and credit stock or sales account

737.

Akirika bought a motor van for his business by cash. The entries are to debit

A.

Motor van and credit Akirika

B.

Sales and credit Akrika

C.

Motor van and credit cash

D.

Cash and credit motor van

Correct answer is C

Since the van is not for resale rather to help in the running of the business, we debit motor van and credit cash account.

738.

The capital of a sole trader can be increased by

A.

Debiting the capital account

B.

Crediting the capital account

C.

Debiting the cash account

D.

Crediting the cash account

Correct answer is C

No explanation has been provided for this answer.

739.

The correct posting in a double entry system of account when there is an increase in double assets, expenses, capital or liabilities is to debit

A.

Capital and debit liabilities

B.

Liabilities and credit assets

C.

Assets and credit capital

D.

Capital and credit assets

Correct answer is C

No explanation has been provided for this answer.

740.

An accountant must not only be interested in record keeping but also in

A.

The application of professional competency

B.

The accuracy of postings

C.

The casting of financial figures

D.

Effective preparation of balance sheet

Correct answer is A

No explanation has been provided for this answer.