JAMB Accounting Past Questions & Answers - Page 167

831.

Sales....................................N10,900
Stock 1/1................................N1,000
Stock 31/12..............................N2,000
Purchases................................N4,000
Returns outwards.........................N800
Returns inwards..........................N600
Carriage outwards........................N300
Carriage inwards.........................N200

The cost of goods available for sale is?

A.

N4,600

B.

N5,000

C.

N6,400

D.

N4,400

Correct answer is D

sales                                                        10900
- Returns inwards                                      600
-carriage outwards                                    300   
                                                                10000 
opening stock           1000
purchase                  4000
- returns outwards      800         3200      
+ carriage inwards                     200
goods avail. for sale                  4400

less; closing stock     2000
carriage outwards      300        2300          2100
Gross profit                                                7900 

 

832.

Sales....................................N10,900
Stock 1/1................................N1,000
Stock 31/12..............................N2,000
Purchases................................N4,000
Returns outwards.........................N800
Returns inwards..........................N600
Carriage outwards........................N300
Carriage inwards.........................N200

Find the gross profit.

A.

N7,800

B.

N7,900

C.

N9,700

D.

N5,700

Correct answer is B

sales                                                        10900
- Returns inwards                                      600
-carriage outwards                                    300   
                                                                10000 
opening stock           1000
purchase                  4000
- returns outwards      800         3200      
+ carriage inwards                     200
goods avail. for sale                  4400

less; closing stock     2000
carriage outwards      300        2300          2100
Gross profit                                                7900                                        

833.

The course of discrepancies between the bank statement and the cash book that overstates the cash book is the?

A.

Dividend received

B.

Uncredited expenses

C.

Uncredited cheques

D.

Interest on lodgement

Correct answer is C

Uncredited cheques: These are cheques received from customers and other sources for which the firm has banked but the bank has not yet availed the funds by crediting the firm's account. In this case, the cash book balance will be more than the bank balance.

834.

The bank charges levied on a current account holder is the charge on?

A.

Transaction

B.

Turnover

C.

Transfer

D.

Cash received

Correct answer is B

Charge on turnover (COT) also known as Commission on turnover are charges a customer incurs for debit transactions (transaction involving withdrawals and/or operating cost to the bank) from his current account. 

 

835.

A major cause of discrepancy between bank statement and the cash book that overstates the bank statement balance is the?

A.

Commission paid

B.

Interest received

C.

Direct payment

D.

Direct withdrawal

Correct answer is B

Electronic charges or payment on the bank statement not yet recorded in the cashbooks can cause discrepancies on the cash book. If interest has being paid on the account and not recorded of the cashbook, the bank statement is likely going to be overstated with the amount paid and not recorded.