JAMB Accounting Past Questions & Answers - Page 166

826.

If an organization maintains a periodic stock system, the stock quantities are?

A.

Updated at the end of the accounting year

B.

Not considered in the updating process

C.

Updated continuously

D.

Updated at the beginning of the accounting year

Correct answer is A

In accounting, a financial period is calculated on a yearly basis. Accounts are prepared at the end of the year.

827.

If an organization maintains a periodic stock system, the stock quantities are?

A.

Updated at the end of the accounting year

B.

Not considered in the updating process

C.

Updated continuously

D.

Updated at the beginning of the accounting year

Correct answer is A

In accounting, a financial period is calculated on a yearly basis. Accounts are prepared at the end of the year.

828.

Sundry debtor..................N20,000
Provision for bad debts........N500

Provision for bad debt at 4% of sundry debtors.
 

Calculate the provision to be taken to the balance sheet?

A.

N780

B.

N800

C.

N1200

D.

N200

Correct answer is B

The business owner made a provision of 500 as bad debt. Total debt owed was 20,000. At the end of the period, bad debts was 4%. Hence we have; 

4% x 20000
0.04 x 20000 = 800

829.

Sundry debtor..................N20,000
Provision for bad debts........N500

Provision for bad debt at 4% of sundry debtors.

Determine the provision for bad debts to profit and loss account?

A.

N500

B.

N820

C.

N1300

D.

N300

Correct answer is D

The business owner made a provision of 500 as bad debt. Total debt owed was 20,000. At the end of the period, bad debts was 4%. Hence we have; 

4% x 20000
0.04 x 20000 = 800

we subtract the total bad debt from the amount that was initially provided for bad debt and charge it to the profit and loss account as a expense

Provision for bad debts = 500
800 - 500 = 300

830.

Benefit enjoyed for which payments have not been made are?

A.

Accruals

B.

Prepayments

C.

Acquisitions

D.

Provisions

Correct answer is A

No explanation has been provided for this answer.