JAMB and WAEC Accounts (Principles of Accounts) questions

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

1. Question 221· Control accounts· WAEC

   Bad debts written off appear on the credit side of the

   • Asales ledger control account
   • Bpurchases ledger control account
   • Cbank account
   • Dcapital account

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   Explanation and discussion

2. Question 222· Depreciation of non-current assets· JAMB

   Under the straight-line method, depreciation each year is

   • Athe same amount
   • Ba fixed percentage of book value
   • Cincreasing
   • Dzero

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3. Question 223· Depreciation of non-current assets· WAEC

   Which asset is not normally depreciated?

   • Amachinery
   • Bmotor vehicles
   • Cfreehold land
   • Dfurniture

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   Explanation and discussion

4. Question 224· Depreciation of non-current assets· WAEC

   A van costing ₦1,200,000 is depreciated at 25% a year on the reducing balance. Its value after two years is

   • A₦900,000
   • B₦600,000
   • C₦675,000
   • D₦300,000

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5. Question 225· Depreciation of non-current assets· WAEC

   The carrying (net book) value of an asset is

   • Aits market value
   • Bcost plus depreciation
   • Ccost minus accumulated depreciation
   • Dits residual value

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6. Question 226· Depreciation of non-current assets· JAMB

   A machine bought for ₦800,000 is depreciated at 10% per annum on the reducing balance. Depreciation in year 2 is

   • A₦80,000
   • B₦72,000
   • C₦64,800
   • D₦160,000

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7. Question 227· Depreciation of non-current assets· JAMB

   An asset costing ₦300,000 with accumulated depreciation of ₦180,000 is sold for ₦100,000. The loss on disposal is

   • A₦20,000
   • B₦80,000
   • C₦200,000
   • D₦120,000

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8. Question 228· Depreciation of non-current assets· WAEC

   Which of these is NOT a cause of depreciation?

   • Apassage of time
   • Bwear and tear
   • Cobsolescence
   • Dinflation

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9. Question 229· Depreciation of non-current assets· JAMB

   Depreciation is caused by

   • Ainflation only
   • Bwear and tear, obsolescence and passage of time
   • Csales
   • Ddrawings

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10. Question 230· Depreciation of non-current assets· WAEC

    A machine cost ₦500,000 with a residual value of ₦50,000 and a life of 5 years. Straight-line depreciation per year is

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

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11. Question 231· Depreciation of non-current assets· JAMB

    Accumulated depreciation is

    • Athe annual charge only
    • Bthe cost of the asset
    • Cthe selling price
    • Dthe total depreciation charged since the asset was bought

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12. Question 232· Depreciation of non-current assets· JAMB

    A machine costing ₦600,000 is depreciated at 20% per annum on the reducing balance. Its net book value at the end of year 2 is

    • A₦384,000
    • B₦360,000
    • C₦480,000
    • D₦96,000

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13. Question 233· Depreciation of non-current assets· WAEC

    A machine bought for ₦300,000 is sold for ₦120,000 when its accumulated depreciation is ₦150,000. Find the result on disposal.

    • Aa loss of ₦30,000
    • Ba profit of ₦30,000
    • Ca loss of ₦180,000
    • Da profit of ₦120,000

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14. Question 234· Depreciation of non-current assets· JAMB

    The sum-of-the-years'-digits method of depreciation charges

    • Athe same amount each year
    • Bmore depreciation in early years
    • Cnothing in the first year
    • Dmore in later years

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15. Question 235· Depreciation of non-current assets· JAMB

    Under the reducing balance method, the depreciation charge

    • Arises each year
    • Bstays the same
    • Cfalls each year
    • Dis nil in the first year

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16. Question 236· Depreciation of non-current assets· JAMB

    A van costing ₦800,000 is depreciated at 25% per annum on the reducing balance. The depreciation for the second year is

    • A₦150,000
    • B₦200,000
    • C₦400,000
    • D₦600,000

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17. Question 237· Depreciation of non-current assets· WAEC

    An asset costing ₦400,000 is depreciated at 20% a year on the reducing balance. Find the depreciation for the second year.

    • A₦80,000
    • B₦64,000
    • C₦160,000
    • D₦72,000

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18. Question 238· Depreciation of non-current assets· WAEC

    An asset bought for ₦30,000 has accumulated depreciation of ₦12,000. Its net book value is

    • A₦30,000
    • B₦42,000
    • C₦12,000
    • D₦18,000

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19. Question 239· Depreciation of non-current assets· WAEC

    Depreciation charged for the year is shown in the

    • Atrading account
    • Bprofit and loss account
    • Ccash book
    • Dsales journal

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20. Question 240· 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