Accounting past questions: JAMB UTME 2020

40 objective questions, with answers. Free to read and practise.

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40 questions, one at a time, marked as you go or at the end. No account needed.

1.
₦ Bank account 59,410 Capital account 50,000 Purchases account 20,000 Rent 2,500 Stationery 90 Typewriter 6,500 Sales 38,500 In preparing a trial balance from the list of balances given above, what is the total in debit and credit columns?
1. A.₦I38,500
2. B.₦147,910
3. C.₦85,800
4. D.₦88,500
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Answer: D ₦88,500
2.
A company has departments L, M and O. Department L Occupies a space twice that of M while O occupies half the space of M. If the company pays ₦70,000 on rent, what is the amount of rent that should be allocated to M?
1. A.₦40,000
2. B.₦20,000
3. C.₦30,000
4. D.₦10,000
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Answer: B ₦20,000
3.
A major cause of discrepancy between the bank statement and the cashbook that overstates the bank statement balance is the
1. A.commission paid
2. B.interest received
3. C.direct withdrawal
4. D.direct payment
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Answer: D direct payment
4.
Accrual accounting differs from cash accounting because it recognizes
1. A.prepayment and cash
2. B.cash and creditors
3. C.cash and debtors
4. D.debtors and creditors
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Answer: D debtors and creditors
5.
Advertising expenses incurred on a product in a business organization should be charged to
1. A.production department
2. B.purchases department
3. C.sales department
4. D.administrative department
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Answer: C sales department
6.
Appropriation Account TAYO TOPE ₦ ₦ interest on capital 750 550 Salaries 800 600 Share of profit 3,300 3,300 Determine the net profits of the partnership
1. A.₦6,600
2. B.₦9,300
3. C.₦4,450
4. D.₦4,850
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Answer: B ₦9,300
7.
Danjuma Ltd. bought 10 bags of rice for N500 each. The company was given 5% and 12% trade and cash discounts respectively. What will be recorded as discount received in the company's book?
1. A.₦250
2. B.₦570
3. C.₦850
4. D.₦600
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Answer: D ₦600
8.
Fiyinfoluwa Motors bought three Toyota Hilux vans on cash at the cost of ₦6,000,000 on debiting the vehicle account, the corresponding credit for the purchase will appear in the
1. A.sales day book
2. B.cash book
3. C.sales subsidiary book
4. D.purchase day book
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Answer: B cash book
9.
Four broad classifications of overheads are
1. A.production, selling, distribution and administration
2. B.production, selling, distribution and material
3. C.selling, distribution and material
4. D.distribution, selling, administration and materials
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Answer: A production, selling, distribution and administration
10.
Given ₦ Stock (1/4/94) 800 Purchases of flour 2,450 Sales 4,745 Wages of bakery staff 675 Carriage outwards 50 Salary of administrative staff 225 Stock (31/3/95) 940 Capital 1,540 Calculate the cost of goods sold.
1. A.₦3,925
2. B.₦3,250
3. C.₦2,985
4. D.₦2,575
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Answer: C ₦2,985
11.
In a control account, provision for bad debts is found on the
1. A.credit side of the sales ledger control account
2. B.debit side of the purchases ledger control açcount
3. C.debit side of the sales ledger control account
4. D.credit side of the purchases ledger control account
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Answer: A credit side of the sales ledger control account
12.
In preparing accounting records, the owners of a business and the business are treated as
1. A.separate legal entities
2. B.partners
3. C.the same person
4. D.having business relationship
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Answer: A separate legal entities
13.
In the head office ledger, the value of goods sent to the branch are
1. A.debited to the branch current account
2. B.debited to the head office current account
3. C.credited to the head office current account
4. D.credited to the branch current account
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Answer: B debited to the head office current account
14.
In trial balance, income and liabilities are
1. A.credited
2. B.credited and debited respectively
3. C.debited and credited respectively
4. D.debited
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Answer: A credited
15.
Kola and Sunday are in partnership sharing profits and losses equally. If Kemi is admitted as a new partner to take 1/5 as her share, what is the new profit or loss sharing ratio?
1. A.Kola 1/3, Sunday 1/3 and Kemi 1/3
2. B.Kola 1/5, Sunday 1/5 and Kemi 3/5
3. C.Kola 2/5, Sunday 1/5 and Kemi 2/5
4. D.Kola 2/5, Sunday 2/5 and Kemi 1/5
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Answer: D Kola 2/5, Sunday 2/5 and Kemi 1/5
16.
One of the major features of book keeping is that it
1. A.is futuristic in nature
2. B.accepts responsibility for all wrong postings
3. C.provides permanent records for all financial transactions
4. D.does not give room for double entry procedure
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Answer: C provides permanent records for all financial transactions
17.
The addition of prime cost, indirect cost and opening work- in-progress less the closing work-in-progress will result in cost of
1. A.goods manufactured
2. B.materials put into production
3. C.goods available for sale
4. D.goods sold
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Answer: A goods manufactured
18.
The amount of subscriptions accrued is reported in the balance sheet under
1. A.fixed cost
2. B.current asset
3. C.long term liability
4. D.current liability
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Answer: B current asset
19.
The debenture issued at par above the nominal value is Said to be issued at a
1. A.margin
2. B.premium
3. C.cost price
4. D.mark-up
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Answer: B premium
20.
The major distinguishing element between the final accounts of a partnership and a sole trader is the
1. A.drawings account
2. B.appropriation account
3. C.capital account
4. D.creditors account
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Answer: D creditors account
21.
The major feature of a journal is that it has
1. A.five columns, date, particulars, folio, debit and credit
2. B.three columns, date, particulars, folio and amount
3. C.Six columns, date. particulars, folio, amount debit and credit
4. D.four columns, date, particulars, folio and amount
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Answer: A five columns, date, particulars, folio, debit and credit
22.
The power to appoint the Auditor General of the Federation is vested in the
1. A.National Assembly
2. B.Civil Service Commission
3. C.Judicial Service Commission
4. D.President
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Answer: D President
23.
The rule of accounting equation requires that account payable should be placed under
1. A.equities
2. B.assets
3. C.capital
4. D.liabilities
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Answer: D liabilities
24.
The rules which govern the internal management of a firm and its financial affairs in a partnership business is a
1. A.memoransum
2. B.deed
3. C.financial regulation
4. D.bye-law
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Answer: B deed
25.
The standing order is a payment instruction given by a
1. A.customer to a fellow customer
2. B.bank to an employee
3. C.customer to the bank
4. D.bank to the customers
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Answer: C customer to the bank
26.
The term "accounting period" is used to refer to the
1. A.time span, usually one year covered by the financial statement
2. B.period within which debtors are expected to settle accounts
3. C.time, span during which taxes are paid to the inland revenue board
4. D.budget period, usually one year relied on by the accountant
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Answer: A time span, usually one year covered by the financial statement
27.
The value of the sales ledger control account is derived from the summation of the
1. A.total creditors control account
2. B.total debtors control account
3. C.all day books
4. D.both the debtors and creditors accounts
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Answer: B total debtors control account
28.
Under which of the following conditions is a partnership dissolved?
1. A.change of the partnership's head office
2. B.purchase of a large quantity of fixed assets
3. C.admission of a new partner
4. D.retirement of a manager who is not a partner
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Answer: C admission of a new partner
29.
Use the following information below to answer this question 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 How much should the petty cashier receive after period 2?
1. A.₦150
2. B.₦350
3. C.₦250
4. D.₦500
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Answer: B ₦350
30.
Use the following information below to answer this question 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 at the end of period 1?
1. A.₦450
2. B.₦300
3. C.₦50
4. D.₦200
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Answer: C ₦50
31.
Use the information below to answer this question ₦ Total current assets 2000 Total fixed assets 4000 Current liabilities 1200 Drawings 200 Long term loan 2000 Calculate the capital of the business.
1. A.₦3000
2. B.₦9400
3. C.₦3400
4. D.₦6000
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Answer: A ₦3000
32.
Use the information below to answer this question ₦ Total current assets 2000 Total fixed assets 4000 Current liabilities 1200 Drawings 200 Long term loan 2000 What is the net working capital?
1. A.₦1800
2. B.₦800
3. C.₦2600
4. D.₦600
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Answer: B ₦800
33.
Use the information below to answer this question A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9000. If the scrap value is presently ₦15,000 what will be the yearly depreciation using straight-line method?
1. A.₦7,000
2. B.₦11,000
3. C.₦4,000
4. D.₦24,000
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Answer: C ₦4,000
34.
Use the information below to answer this question A machine bought for ₦35,000 was estimated to have a life span of 5 years with a scrap value of ₦9000. The yearly depreciation using the straight-line method would be
1. A.₦5200
2. B.₦800
3. C.₦6500
4. D.₦4400
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Answer: A ₦5200
35.
Use this information below to answer this question ₦ Capital: Opening balance 307,000 Closing balance 342,000 Net profit for the period 121,600 Purchases 706,000 Carriage inwards 17,500 Cost of goods sold 740,700 Total selling, general and administration expenses 526,000 Discount received 9,650 Opening stock 98,800 Calculate the closing stock for the period.
1. A.₦69,300
2. B.₦81,600
3. C.₦81,300
4. D.₦106,400
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Answer: B ₦81,600
36.
Use this information below to answer this question ₦ Capital: Opening balance 307,000 Closing balance 342,000 Net profit for the period 121,600 Purchases 706,000 Carriage inwards 17,500 Cost of goods sold 740,700 Total selling, general and administration expenses 526,000 Discount received 9,650 Opening stock 98,800 What is the gross profit for the period?
1. A.₦535,650
2. B.₦628,300
3. C.₦647,600
4. D.₦106,400
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Answer: C ₦647,600
37.
Which of the following accounting conventions suggests that accountants should use a method of valuation that understates rather than overstates results?
1. A.monetary
2. B.cost
3. C.conservatism
4. D.historical
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Answer: C conservatism
38.
Which of the following accounting records are source documents?
1. A.journals and ledgers
2. B.sales invoice and debit note
3. C.sales invoice and cashbook
4. D.cashbook and debit note
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Answer: B sales invoice and debit note
39.
Which of the following are advantages of departmental accounts?
1. A.the capital of the business can be calculated easily
2. B.easy knowledge of the sources of funding
3. C.encouragement of healthy rivalry among the various department
4. D.the department making the highest profit can be easily determined
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Answer: B easy knowledge of the sources of funding
40.
Which of the following errors will affect the trial balance total?
1. A.omission of sales of ₦3000 and purchases of ₦2000
2. B.Posting discount allowed to the debit side of discount allowed account
3. C.omission of one account from the list when extracting the ledgers
4. D.failure to post sales of ₦2000 and purchases of ₦2000
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Answer: A omission of sales of ₦3000 and purchases of ₦2000

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