JAMB Accounting Past Questions & Answers - Page 76

377.

When stock is withdrawn for personal use, the accounting entries is to debit

A.

Stock account credit drawings

B.

Drawing account, credit stock account

C.

Personal account credit cash account

D.

Cash account, credit personal account

Correct answer is B

Journal Entry will be to debit drawings & credit related stocks or Sales account on cost basis for having used goods for personal use by the owner.

Whenever the proprietor withdraws any sort of cash,goods or asset for his or her personalprivate or domestic it is considered as drawings.

 

378.

Purchases can be ascertained through the preparation of a

A.

Stock account

B.

Sales account

C.

Total debtors control account

D.

Total creditors control account

Correct answer is A

No explanation has been provided for this answer.

379.

Clifford pays rent of N200 per month for premises, He paid N2,800 within the year. Compute the prepayment.

A.

N300

B.

N400

C.

N600

D.

N200

Correct answer is A

No explanation has been provided for this answer.

380.

I. Members subscription
II. Fines from members
III. Donation
IV. Loan from bank

From the information above, sources of income for a Not-for-profit-making organization include

A.

I, III, IV

B.

I, II, III

C.

I, II, IV

D.

I and IV

Correct answer is B

Nonprofits can and do use the following sources of income to help them fulfill their missions:

  • Fees for goods and/or services.
  • Individual donations and major gifts.
  • Bequests.
  • Corporate contributions.
  • Foundation grants.
  • Government grants and contracts.
  • Interest from investments.
  • Loans/program-related investments (PRIs)