JAMB Accounting Past Questions & Answers - Page 80

397.

A receipt is an evidence of

A.

Payments

B.

Stocking

C.

Delivery

D.

Discounts

Correct answer is A

A receipt is a written acknowledgment of having received, or taken into one's possession, a specified amount of money, goods, etc. 

398.

Given: N

Drawings 3,500
Net loss 2,500
Capital 1.1,2007 35,000
Additional capital 10,000
The adjusted capital as at 31 : 12 : 2007 is

A.

N45,000

B.

N39, 000

C.

N35,000

D.

N46,000

Correct answer is B

Capital + Additional capital - Drawings - net loss

35,000 +10,000 - 2500 - 3500 = 39,000

 

399.

Which of the following condition would attract credit and debit notes to be used?

A.

When goods are received from supplier

B.

When a trial balance is extracted

C.

When a buyer is under or over charged

D.

When goods are sold to a buyer

Correct answer is C

Debit note is usually issued by the purchaser andcredit note is usually issued by the seller. But debit note can be issued by the seller when the buyer erroneously records more and credit note can also be issued by the buyer when the seller undercharges the buyer.

400.

The effect of overstating revenue expenditure in the profit and loss account is that the

A.

Opening stock will be increased

B.

Net profit will be understand

C.

Net profit will be overstead

D.

Opening stock will be decreased

Correct answer is B

As a general rule, an increase in any type of business expense lowers profit. overstating expenditure would decrease or understate the net profit