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

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

AllJAMBWAEC
All topicsAccounting concepts and conventions · 35Accounts of not-for-profit organisations · 29Accruals, prepayments and provisions · 34Bank reconciliation statements · 31Branch and departmental accounts · 29Company accounts · 33Control accounts · 30Depreciation of non-current assets · 34Double entry and the ledger · 38Final accounts of a sole trader · 39Incomplete records · 31Manufacturing accounts · 29Nature and purpose of accounting · 29Partnership accounts · 34Petty cash and the imprest system · 26Public sector accounting · 30Source documents and books of original entry · 30The cash book and discounts · 33The trial balance and errors · 35

  1. Question 21· Accruals, prepayments and provisions· WAEC

    A provision for doubtful debts is

    Explanation and discussion

  2. Question 22· 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

  3. Question 23· Accruals, prepayments and provisions· WAEC

    Commission earned but not yet received at the year end is

    Explanation and discussion

  4. Question 24· Accruals, prepayments and provisions· JAMB

    Bad debts recovered are treated as

    Explanation and discussion

  5. Question 25· Accruals, prepayments and provisions· JAMB

    An increase in the provision for doubtful debts is

    Explanation and discussion

  6. Question 26· Accruals, prepayments and provisions· WAEC

    Insurance of ₦24,000 paid covers 12 months, of which 3 months relate to next year. How much is charged for the current year?

    Explanation and discussion

  7. Question 27· Accruals, prepayments and provisions· WAEC

    Commission received in advance at the year end is shown as

    Explanation and discussion

  8. Question 28· Accruals, prepayments and provisions· WAEC

    Trade receivables are ₦200,000 and a 5% allowance for doubtful debts is required. Find the allowance.

    Explanation and discussion

  9. Question 29· 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

  10. Question 30· Accruals, prepayments and provisions· WAEC

    Insurance paid ₦9,000 includes ₦3,000 for next year. The insurance expense for the year is

    Explanation and discussion

  11. Question 31· Accruals, prepayments and provisions· WAEC

    Rent for the year is ₦60,000 but only ₦45,000 has been paid. How is the difference treated?

    Explanation and discussion

  12. Question 32· 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

  13. Question 33· 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

  14. Question 34· Accruals, prepayments and provisions· WAEC

    A prepaid expense appears in the balance sheet as

    Explanation and discussion

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