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 21: At the end of a financial period, the trading profit and loss account of a company showed a profit of ₦120,000. It was however discovered that revenue of ₦12,000 was recorded as expenses while expenses of ₦4,000 had been recorded as revenue. What should be the correct profit for the period? Options:
  A) ₦104,000
  B) ₦128,000
  C) ₦136,000
  D) ₦144,000
  Show Answer
  The correct answer is B .
• Question 22: Expense paid during the conversion of a partnership to a company are Options:
  A) debited to the partners' capital account
  B) debited to the realization account
  C) debited to the cash account
  D) credited to the realization account
  Show Answer
  The correct answer is D .
• Question 23:

  Use the information to answer this question

  Receipts and Payment Account (Extract)

                                 N

  Bal b/f                   3650       Insurance   900

  Subscription   (99) 7500       Rate          11,700

                     (2000) 1000      Bal c/d        8,050

  Fees                      8500

                              20,650                       20,650

  The following information were given:

  Rates owing Insurance prepaid Subscription in arrears

  1/199 3,600 50 700

  31/12/99 2000 1000 600

  What is the opening cash balance

  Options:
  A) ₦20,600
  B) ₦8,050
  C) ₦3,650
  D) ₦8,500
  Show Answer
  The correct answer is C .
• Question 24:

  Given:

  Opening cash balance ₦20,000

  Sales of match tickets ₦15,000

  Clearing of pitch ₦1,200

  Refreshments ₦3,500

  Referees' allowance ₦1,000

  Cost of petrol ₦1,120

  Donation from local government ₦3,800

  The club's balance is

  Options:
  A) ₦39,180
  B) ₦34,830
  C) ₦34,380
  D) ₦31,980
  Show Answer
  The correct answer is D .
• Question 25: A double entry for a transaction that offsets one amount against another on both sides of the cashbook is a Options:
  A) original entry
  B) contra entry
  C) prime entry
  D) contract entry
  Show Answer
  The correct answer is B .
• Question 26: The accounting convention which states that profit must not be recognized until realized while all losses should be adequately provided for it termed Options:
  A) materiality
  B) objectivity
  C) consistency
  D) conservatism
  Show Answer
  The correct answer is D .
• Question 27:

  A company has two departments X and Y. Y transferred goods to X at a profit margin of 25%. ₦10,000 worth of goods was not sold at the end of the accounting period.

  How much is the unrealized profit?

  Options:
  A) ₦2000
  B) ₦2500
  C) 12000
  D) 12500
  Show Answer
  The correct answer is A .
• Question 28:

  The purpose of profit and loss account is to ascertain

  Options:
  A) Gross profit
  B) Capital
  C) Expenses
  D) Net profit
  Show Answer
  The correct answer is D .
• Question 29:

  Which of the following stock valuation method is suitable under inflationary conditions?

  Options:
  A) LIFO
  B) simple average
  C) FIFO
  D) weighted average
  Show Answer
  The correct answer is C .
• Question 30: If the total discount allowed in a cash book was ₦230 and the total discount received was ₦255, which of the following is true concerning the two discounts? Options:
  A) They must be balanced in the cash book and the difference taken to the debtors ledger
  B) They must be balanced in the cash book and the difference taken to the trial balance
  C) They should not be balanced in the cash book before being taking to the trial balance
  D) They should not appear in the trial balance as they were already either received or paid out
  Show Answer
  The correct answer is D .