Accounts Exam Past Questions and Answers | JAMB, WAEC and NECO

Accounts, also called Principles of Accounts by some exam boards, focuses on the organized and thorough recording of a business's financial transactions.

• Question 1: ₦800,000 worth of ordinary shares of 50k were issued at ₦1 each, payable in full on application. The entry in the cash book would be to Options:
  A) credit ₦1,600,000
  B) debit ₦1,600,000
  C) credit ₦1,600,000
  D) debit ₦800,000
  Show Answer
  The correct answer is D .
• Question 2:

  Use the information below to answer question .

  Debtors.................................₦20

  Provision for bad debts..................10%

  Provision for discount on debtors........5%

  The provision for bad debt is?

  Options:
  A) ₦2000
  B) ₦800
  C) ₦3000
  D) ₦1900
  Show Answer
  The correct answer is A .
• Question 3:

  Five hundred naira monthly is allowed on an imprest system. The following transactions took place.

  Period 1:

  Cash advanced to petty cashier......₦500
  Petty cashier paid out: stamp.......₦200
  Newspaper...........................₦250

  Period 2:

  Cash to petty cashier...............₦450
  Cashier paid for writing materials..₦350

  What was the balance of cash with the petty cashier ata the end of period 1?

  Options:
  A) ₦50
  B) ₦200
  C) ₦300
  D) ₦450
  Show Answer
  The correct answer is A .
• Question 4:

  Date	Stock	Qty. (units)	Cost/Price (#)
  July	Bal. b/d	2 000	2.00
  Aug.	Purchases	10 000	2.50
  Sept.	Purchases	20 000	3.00
  Oct.	Sales	8 000	3.50
  Nov.	Sales	23 000	4.00

  Assuming the closing stock was valued at N19 000 at the end of November, what was the gross profit?

  Options:
  A) ₦30 000
  B) ₦50 000
  C) ₦70 000
  D) ₦100 000
  Show Answer
  The correct answer is B .
• Question 5:

  Use the information below to answer questions 23 and 24.

  Incomplete Record (Extract)

  Sales......................................₦10,600

  Rent...........................₦200

  Depreciation of vehicle (cost ₦5000) 10%

  Gross profit margin is 20%

  What is the cost of goods sold?

  Options:
  A) ₦4 800
  B) ₦8 480
  C) ₦2 320
  D) ₦9 900
  Show Answer
  The correct answer is B .
• Question 6:

  The prime cost is the total of the

  Options:
  A) direct materials+direct labour+direct wages
  B) production cost+selling expenses
  C) administrative expenses+selling expenses+distribution expenses
  D) direct materials+work overhead expenses
  Show Answer
  The correct answer is A .
• Question 7:

  Halal Limited with three departments has a total of ₦7,200,000 as net debtors for the year ended 31/12/97.

  The company's policy provides for 15% bad debt annually. Which of the following represents the total balance of debtors before adjustment?

  Options:
  A) ₦6,120,000
  B) ₦6,120,300
  C) ₦8,280,000
  D) 8,820,000
  Show Answer
  The correct answer is A .
• Question 8:

  Use the information to answer this question...............ZEBRA PLC..............

  .............Balance sheet as at 31st March, 2002

  ...............N...............N............N......

  Capital......100,000...Fixed assets:

  Current................Land &..................

  Liabilities...........buildings..50,000......

  Creditors........30000..Furniture..10,000....60,000

  .......................Current..................

  .......................Assets: .......

  ..................Stock .........30,000...........

  ..................Debtors.......30,000.............

  ..................Cash..........10,000......70,000..

  .............130,000.........................130,000

  The business was acquired on 1st April, 2002 at a purchase consideration of ₦120,000 by SOZ. All assets and liabilities were taken over except the cash to open the new firm's bank account additional ₦20,000 was paid into the bank.Calculate the network of the business

  Options:
  A) ₦120,000
  B) ₦90,000
  C) ₦80,000
  D) ₦30,000
  Show Answer
  The correct answer is B .
• Question 9:

  The effect of transaction when cash is paid into the bank is?

  Options:
  A) bank balance decrease and cash balance increase
  B) cash balance decrease and bank balance increase
  C) bank balance decrease and cash balance decrease
  D) cash balance increase and bank balance increase
  Show Answer
  The correct answer is B .
• Question 10: The understatement of closing value of work-in-process would have the effect of? Options:
  A) understating cost of goods manufactured
  B) overstating prime cost of manufactured
  C) overstating cost of goods manufactured
  D) undersating prime cost of goods manufactured
  Show Answer
  The correct answer is C .