JAMB Accounting Past Questions & Answers - Page 61

301.

Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?

A.

Selling price

B.

Fixed percentage on cost

C.

Cost price

D.

Invoice price

Correct answer is C

Goods are transferred from head office to branch at cost price, selling price and cost price plus mark up

 

302.

The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a

A.

Bonus

B.

Goodwill

C.

Premium

D.

Commission

Correct answer is B

Goodwill is the excess of the purchase consideration over the total value of an entity

 

303.

Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________

A.

Partners salaries

B.

Interest on capital

C.

Interest on loans

D.

Partners drawings

Correct answer is C

Is charged in the profit and loss account as finance expenses

304.

In reconciling the branch and head office accounts, remittance in transit in the branch books is treated as a_____________

A.

Debit entry

B.

Contra entry

C.

Credit entry

D.

Reversal entry

Correct answer is A

A contra entry is an entry which is recorded to reverse or offset an entry on the other side of an account

  When cash is remitted from the branch

  Dr Bank account

  Cr Branch account

  Or

  Dr Remittance from bank

  Cr Remittance from branch


 

305.

Which of the following is not a type of branch?

A.

Dependent branch

B.

Foreign branch

C.

Independent branch

D.

Single branch

Correct answer is D

No explanation has been provided for this answer.