JAMB Accounting Past Questions & Answers - Page 175

871.

Which of the following items are current assets?

A.

Stock, bills receivable, cash and debtors

B.

Stock, bill payable, cash and debtors

C.

Stock, bad debt, bills receivable and cash

D.

Stock, work-in-progress, cash and bills payable

Correct answer is A

Current assets include cash and other assets that are expected to be converted to cash within a year. Option A ''Stock, bills receivable, cash and debtors'' is correct.

- Stock are goods bought for the purpose of resale
- Bills receivable are incurred as a result of credit sales
- Cash is the available money at hand
- A debtor is a person, company, or other entity that owes money.

873.

Total current assets..................N2,000
Total fixed assets....................N4,000
Current liabilities...................N1,200
Drawings..............................N200
Long-term loan........................N2,000

Determine the capital of the business?

A.

N9,400

B.

N6,000

C.

N3,400

D.

N3,000

Correct answer is D

Capital = Assets - liabilities

Assets = Fixed assets + current assets + drawings

2000 + 4000 + 200 = 6200

Liabilities = current liabilities + longterm loans

1200 + 2000 = 3200

6200 - 3200 = 3000

 

874.

Given:

Balance as per cash book...................N20,000
Unpresented cheques........................N5,200
Direct credit to the bank..................N1,000
Direct debit from the bank.................N1,000
Credit in the cash book....................N500

Calculate the balance as per bank statement at the end of the year?

A.

N24,700

B.

N25,200

C.

N26,200

D.

N27,700

Correct answer is A

Balance per bank is the ending cash balance appearing on a bank statement.

Hence we have; cashbook balance + unpresented cheques + direct bank debit - (direct credit + cashbook credit)

20,000+5200+1000 - (1000+500) = 24,700

875.

Which of the should not be added or subtracted from the bank statement balance to determine the adjust cash balance?

 

A.

 Error by the bank

B.

Undercasting of the cash book

C.

Overcasting of the cash book

D.

Bank service charges

Correct answer is A

No explanation has been provided for this answer.