JAMB Accounting Past Questions & Answers - Page 267

1,331.

The balance on a purchase ledger control account represents the?

A.

Present amount that a business owes its suppliers at date

B.

Total credit avaiable to the end of the year to be utilized in future

C.

Total credit the business enjoyed for the particular year from its suppliers

D.

Total credit owed the business by its customers

Correct answer is A

No explanation has been provided for this answer.

1,332.

On Ist January, 1993, lobo Company purchased equipment for N18,000. it uses straight-line depreciation with an estimates eight-year useful life and a N2,000 salvage value. On 31st December, 1996, it sells the equipment for N8000. In recording this sales, it should reflect?

A.

N10,000 loss

B.

N2,000 loss

C.

N4,000 loss

D.

N8,000 gain

Correct answer is C

equipment price = 18000

salvage value after 8 years useful life = 2000

If in 1996 ( 3 years later) it is sold for 8000, hence we have

18000 - (2000 x 3 yrs = 6000) = 12000

12000 - 8000 = 4000

This means that the equipment was supposed to have been sold for 12,000 after 3years of usage instead it was sold for 8,000. This shows a N4000 loss

1,335.

Mayana Corporation uses special journals to record its transactions. If one of Mayana's customers returns merchandize purchased with cash (for a refund), it makes an entry in the?

A.

Cash receipts journal

B.

Sales journal

C.

General journal

D.

Cash disbursement journal

Correct answer is D

No explanation has been provided for this answer.