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JAMB Accounts (Principles of Accounts) questions: Accruals, prepayments and provisions

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

AllJAMBWAEC
All topicsAccounting concepts and conventions · 18Accounts of not-for-profit organisations · 15Accruals, prepayments and provisions · 17Bank reconciliation statements · 15Branch and departmental accounts · 13Company accounts · 18Control accounts · 15Depreciation of non-current assets · 17Double entry and the ledger · 19Final accounts of a sole trader · 20Incomplete records · 16Manufacturing accounts · 15Nature and purpose of accounting · 15Partnership accounts · 19Petty cash and the imprest system · 12Public sector accounting · 16Source documents and books of original entry · 16The cash book and discounts · 17The trial balance and errors · 19

  1. Question 1· Accruals, prepayments and provisions· JAMB

    Wages paid ₦90,000; wages owing at year end ₦6,000. The charge to profit and loss is

    Explanation and discussion

  2. Question 2· Accruals, prepayments and provisions· JAMB

    Rent of ₦60,000 a year was charged, but ₦75,000 was paid during the year. The ₦15,000 difference is

    Explanation and discussion

  3. Question 3· Accruals, prepayments and provisions· JAMB

    Rent received in advance is shown in the balance sheet as

    Explanation and discussion

  4. Question 4· Accruals, prepayments and provisions· JAMB

    Rent received in advance at the year end is shown as

    Explanation and discussion

  5. Question 5· Accruals, prepayments and provisions· JAMB

    Bad debts of ₦4,000 are written off. The double entry is

    Explanation and discussion

  6. Question 6· Accruals, prepayments and provisions· JAMB

    Insurance of ₦36,000 was paid for the 12 months to 31 March 2027. The accounting year ends on 31 December 2026. The amount prepaid at the year end is

    Explanation and discussion

  7. Question 7· Accruals, prepayments and provisions· JAMB

    Rates of ₦48,000 paid on 1 April 2025 cover the 12 months to 31 March 2026. At 31 December 2025, how much is prepaid?

    Explanation and discussion

  8. Question 8· Accruals, prepayments and provisions· JAMB

    December's electricity bill of ₦7,000 was unpaid at 31 December. The correct adjustment is to

    Explanation and discussion

  9. Question 9· Accruals, prepayments and provisions· JAMB

    Wages owing at the end of the year are shown in the balance sheet as a

    Explanation and discussion

  10. Question 10· Accruals, prepayments and provisions· JAMB

    Stationery bought ₦15,000; unused stock at year end ₦4,000. The stationery expense is

    Explanation and discussion

  11. Question 11· Accruals, prepayments and provisions· JAMB

    Insurance prepaid at the end of the year is shown as

    Explanation and discussion

  12. Question 12· Accruals, prepayments and provisions· JAMB

    Debtors are ₦80,000 and the provision for doubtful debts is to be 5%. The existing provision is ₦3,000. The amount charged to profit and loss is

    Explanation and discussion

  13. Question 13· Accruals, prepayments and provisions· JAMB

    Bad debts recovered are treated as

    Explanation and discussion

  14. Question 14· Accruals, prepayments and provisions· JAMB

    An increase in the provision for doubtful debts is

    Explanation and discussion

  15. Question 15· Accruals, prepayments and provisions· JAMB

    Provision for doubtful debts is 5% of debtors of ₦80,000. The previous provision was ₦3,000. The charge to profit and loss is

    Explanation and discussion

  16. Question 16· Accruals, prepayments and provisions· JAMB

    Commission of ₦12,000 earned but not yet received at the year end is shown in the balance sheet as

    Explanation and discussion

  17. Question 17· Accruals, prepayments and provisions· JAMB

    The allowance for doubtful debts is increased from ₦4,000 to ₦6,000. The income statement is charged with

    Explanation and discussion

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