JAMB Accounting Past Questions & Answers - Page 73

361.

Given: 

I. Cash refunds 
II. Debit note issued 
III. Dishonored cheque 
IV. Purchases
The item on the credit side of purchases ledger control account includes

A.

I, II and III only

B.

I and II only

C.

III and IV only

D.

I, III and IV only

Correct answer is D

Purchases control account it is also called total creditor control account 
I,II & IV : some of the items that appear on the credit side of purchases ledger are cash refund to supplier, dishonored cheque by banks and credit purchases

 

362.

In manufacturing account, depreciation of office machine is charged to

A.

Trading account

B.

Appropriation account

C.

Balance sheet

D.

Profit and loss account

Correct answer is D

Profit and loss account: the depreciation of the office machine is considered as part of administrative expense which must be charged against the profit of the company

 

363.

The account where the profit are distributed to the partner in their profit sharing ratio in partnership

A.

Trading account

B.

Appropriation account

C.

Balance sheet

D.

Profit and loss account

Correct answer is B

Appropriation account is the account into which the net profit found in the profit and loss account of the partner will be carried down to and will be shared according to their sharing ratio

364.

Capital for a profit making organization is generated through

A.

Subscription

B.

Shares

C.

Donation

D.

Gift

Correct answer is B

Share: profit making organizations use different shares such as ordinary and preference shares to source for money from the public

365.

Which of these accounts is dissolution expenses credited?

A.

Partners capital account

B.

Revaluation account

C.

Partners current account

D.

Realization account

Correct answer is D

Realization account: the cash realized from sales of asset is credited to it.