JAMB Accounts (Principles of Accounts) questions

312 questions with answers and explanations. Tap an option to check yourself.

1. Question 121· Depreciation of non-current assets· JAMB

   A lorry cost ₦2,400,000, has a residual value of ₦400,000 and a useful life of 4 years. Find the annual straight-line depreciation.

   • A₦400,000
   • B₦600,000
   • C₦500,000
   • D₦700,000

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   Explanation and discussion

2. Question 122· Depreciation of non-current assets· JAMB

   Equipment costing ₦500,000 with a residual value of ₦50,000 is depreciated by the straight-line method over 5 years. Its net book value at the end of the second year is

   • A₦320,000
   • B₦400,000
   • C₦410,000
   • D₦300,000

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   Explanation and discussion

3. Question 123· Depreciation of non-current assets· JAMB

   Accumulated depreciation is shown in the statement of financial position as

   • Aa liability
   • Ba deduction from the cost of the asset
   • Ca current asset
   • Dincome

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   Explanation and discussion

4. Question 124· Depreciation of non-current assets· JAMB

   A machine cost ₦500,000 and is expected to last 5 years with a scrap value of ₦50,000. Annual depreciation by the straight-line method is

   • A₦100,000
   • B₦110,000
   • C₦90,000
   • D₦50,000

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   Explanation and discussion

5. Question 125· Depreciation of non-current assets· JAMB

   Charging depreciation reduces profit but not the cash balance because depreciation is

   • Aa liability
   • Ba cash payment
   • Ca non-cash expense
   • Da source of capital

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   Explanation and discussion

6. Question 126· Depreciation of non-current assets· JAMB

   A machine bought for ₦900,000 is depreciated at 10% a year on cost with no residual value. What is its carrying value after 3 years?

   • A₦270,000
   • B₦656,100
   • C₦630,000
   • D₦810,000

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   Explanation and discussion

7. Question 127· Depreciation of non-current assets· JAMB

   Which of these causes the depreciation of a fixed asset?

   • AWear and tear
   • BA rise in its market price
   • CGood maintenance
   • DInsurance cover

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   Explanation and discussion

8. Question 128· Depreciation of non-current assets· JAMB

   A van bought for ₦1,200,000 had accumulated depreciation of ₦700,000 when it was sold for ₦450,000. The result on disposal is

   • Aa profit of ₦50,000
   • Ba loss of ₦50,000
   • Ca loss of ₦250,000
   • Da profit of ₦450,000

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   Explanation and discussion

9. Question 129· Double entry and the ledger· JAMB

   The owner brings in a personal car for business use. The entry is

   • Adebit motor vehicles, credit capital
   • Bdebit capital, credit motor vehicles
   • Cdebit drawings, credit car
   • Ddebit cash, credit capital

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   Explanation and discussion

10. Question 130· Double entry and the ledger· JAMB

    A debtor who owed ₦5,000 is declared bankrupt and pays nothing. The entry is

    • Adebit the debtor, credit bad debts
    • Bdebit bad debts, credit the debtor's account
    • Cdebit cash, credit sales
    • Ddebit capital, credit debtor

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    Explanation and discussion

11. Question 131· Double entry and the ledger· JAMB

    Rent of ₦40,000 paid by cheque is recorded by

    • Adebiting bank account and crediting rent account
    • Bdebiting rent account and crediting bank account
    • Cdebiting rent account and crediting cash account
    • Ddebiting capital account and crediting bank account

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    Explanation and discussion

12. Question 132· Double entry and the ledger· JAMB

    A loan of ₦200,000 received from a bank by cheque is recorded by

    • Adebiting bank and crediting the loan account
    • Bdebiting the loan account and crediting bank
    • Cdebiting capital and crediting bank
    • Ddebiting bank and crediting capital

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    Explanation and discussion

13. Question 133· Double entry and the ledger· JAMB

    Goods worth ₦8,000 returned by a customer are recorded by

    • Adebiting purchases
    • Bdebiting the customer and crediting returns inwards
    • Cdebiting returns inwards and crediting the customer
    • Dcrediting cash

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    Explanation and discussion

14. Question 134· Double entry and the ledger· JAMB

    Office furniture bought by cheque is recorded by

    • Adebiting purchases and crediting cash
    • Bdebiting bank and crediting furniture
    • Cdebiting furniture account and crediting bank account
    • Ddebiting capital and crediting bank

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    Explanation and discussion

15. Question 135· Double entry and the ledger· JAMB

    Under double entry, every transaction affects

    • Aonly one account
    • Bonly personal accounts
    • Conly the cash account
    • Dat least two accounts

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    Explanation and discussion

16. Question 136· Double entry and the ledger· JAMB

    Goods worth ₦25,000 returned to Tolu, a supplier, are recorded by

    • Adebiting purchases account and crediting Tolu's account
    • Bdebiting returns outwards account and crediting Tolu's account
    • Cdebiting Tolu's account and crediting returns outwards account
    • Ddebiting Tolu's account and crediting sales account

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    Explanation and discussion

17. Question 137· Double entry and the ledger· JAMB

    A ledger account with a debit balance usually represents

    • Aa liability
    • Ban asset or expense
    • Ccapital
    • Da revenue

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    Explanation and discussion

18. Question 138· Double entry and the ledger· JAMB

    Discount allowed of ₦2,000 to Bisi, a debtor, is recorded by

    • Adebiting cash account and crediting discount allowed account
    • Bdebiting Bisi's account and crediting discount allowed account
    • Cdebiting discount allowed account and crediting Bisi's account
    • Ddebiting discount allowed account and crediting cash account

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    Explanation and discussion

19. Question 139· Double entry and the ledger· JAMB

    Chinedu started business by paying ₦500,000 into a business bank account. The correct entry is

    • Adebit bank account; credit capital account
    • Bdebit capital account; credit bank account
    • Cdebit bank account; credit drawings account
    • Ddebit cash account; credit bank account

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    Explanation and discussion

20. Question 140· Double entry and the ledger· JAMB

    Office furniture bought for cash is recorded by

    • Adebiting furniture and crediting purchases
    • Bdebiting purchases and crediting cash
    • Cdebiting cash and crediting furniture
    • Ddebiting furniture and crediting cash

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    Explanation and discussion