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 81: An expenses is said to be revenue in nature if it Options:
  A) adds or contributes to the operating income of the business
  B) necessitates the introduction of additional capital
  C) reduces the capital of the business
  D) adds to or improves the value of fixed assets
  Show Answer
  The correct answer is A .
• Question 82: Head office sends goods to its branch at cost plus mark-up of of 25%. A debit of ₦40,000 to the branch stock account in the head office books will indicate that the head office has sent goods with a profit of Options:
  A) ₦4000
  B) ₦6000
  C) ₦10000
  D) ₦8000
  Show Answer
  The correct answer is D .
• Question 83:

  Use the information below to answer this question

  A company advertised and issued 750,000, 12% preference shares of N1 each to be issued₦1.50 per share. Applications for 1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received. Application money for 120,000 shares was refunded to unsuccessful applicants and the remaining applicants were allotted shares on prorata basis.

  The second final call account was debited with

  Options:
  A) ordinary share capital account ₦187,500
  B) 12% preference share capital account ₦187,500
  C) 12% preference share capital ₦375,000
  D) bank account ₦187,500
  Show Answer
  The correct answer is B .
• Question 84:

  Use the following to answer this question.

  Industry ltd, issued 100,000 shares at ₦1 each out of its Authorized share capital of ₦200,000 at ₦1 each. At the of the first call, all shareholders paid in full, except for two shareholder who owes ₦20,000.

  The Unissued capital of the company is

  Options:
  A) ₦310,000
  B) ₦200,000
  C) ₦210,000
  D) ₦100,000
  Show Answer
  The correct answer is D .
• Question 85: Chibuike bought 36 notebooks at ₦10 each from John and was given a trade discount of 5%. In addition, he was offered 1% cash discount which he took advantage of. How much did Chibuike pay? Options:
  A) ₦338.58
  B) ₦342.00
  C) ₦345.42
  D) ₦360,00
  Show Answer
  The correct answer is A .
• Question 86: Which of the following is a debit item in the sales ledger control account Options:
  A) Cheque reciepts
  B) Dishonoured cheques
  C) Discount allowed
  D) Bills recievable
  Show Answer
  The correct answer is B .
• Question 87:

  Use the information below to answer question

  Net loss.......................₦2300

  Capital........................₦10500

  Liabilities....................₦7200

  What will be the equity of the business?

  Options:
  A) ₦12 800
  B) ₦4900
  C) ₦8200
  D) ₦9500
  Show Answer
  The correct answer is C .
• Question 88:

  

  Credit purchases are always put at 150% of the total cash paid to suppliers

  Calculate the closing balance of the ledger account

  Options:
  A) ₦6 900
  B) ₦6400
  C) ₦5000
  D) ₦4000
  Show Answer
  The correct answer is C .
• Question 89:

  Given:

  Purchases ledger balance..............₦4000
  Purchases for the period..............₦50000
  Cash refunded by suppliers............₦290
  Cheques paid to suppliers..............₦42300
  Returns outwards.......................₦2000
  Discount received from suppliers.......₦400

  The balance of the purchases ledger control account is?

  Options:
  A) ₦10390
  B) ₦9990
  C) ₦9590
  D) ₦9010
  Show Answer
  The correct answer is C .
• Question 90: 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 .