JAMB Accounting Past Questions & Answers - Page 63

311.

In the head office ledger, the value of goods sent to the branch are____________

A.

Debited to the branch current account

B.

Debited to the head office current account

C.

Credited to the head office current account

D.

Credited to the branch current account

Correct answer is B

Branch current account is maintained in the head office books to record all transactions between the head office and the branch. This account is debited with the following:

  i. Goods sent to branch

  ii. Expenses of the branch paid by the head office

  iii. Profit of the branch

312.

When goodwill is not retained in the business, the entries in the new partners books will be to debit______________

A.

Goodwill account and credit partners capital account

B.

Cash account and credit goodwill account

C.

Goodwill account and credit cash account

D.

Partners capital account and credit goodwill account

Correct answer is D

When goodwill is raised in the books at full value, the entry is

  Dr Goodwill Account

  Cr Old partners capital account (old ratio)

  When the raised goodwill is written off, entry will be:

  Dr All partners capital account

  Cr Goodwill accounts

  Note: goodwill written off includes new partners in the new profit sharing ratio

313.

The amount called in respect of a share but not paid before or on the date fixed for payment is referred to as:

A.

Call in advance

B.

Call in arrears

C.

Forfeiture

D.

Shares

Correct answer is B

is the amount called by the company which is not paid by the shareholders before the due date fixed for payment

314.

The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the________

A.

Accountant general

B.

Finance minister

C.

Auditor general

D.

Permanent secretary

Correct answer is C

Appropriation is the amount that government reserves for a particular purpose. Public expenditure is the spending made by government of a country on collective needs

315.

When goods are sent to branch at cost plus mark up, it means that the branch should sell at____________

A.

Price above or below the stipulated price

B.

Any price but not below the transfer price

C.

Cost price

D.

A price that is equal to the mark up

Correct answer is A

Cost plus mark up is a pricing strategy in which the selling price is determined by adding a specific amount mark up to a product unit cost