Jamb Accounting Past Questions For Year 1994
Question 6
The suspense account is used to correct book-keeping error where the
- A. amount involved is quite significant
- B. item involved is not material
- C. item involved is unknown
- D. error does not affect the agreement of the trial balance
Question 7
The use of the folio in the ledger is for
- A. referencing purposes
- B. particulars of the transaction
- C. the account titles
- D. only credit items
Question 8
Mallam Gambo bought a freezer for his shop costing N10,500. In recording, he debited office expenses account and credited the bank account. What book-keeping error has he committed?
- A. Error of commission
- B. Error of reversal of entries
- C. Error of principle
- D. Compensating error
Question 9
What is the cardinal rule of the double entry system?
- A. Debit the increasing account and credit the decreasing account
- B. Debit the receiving account and credit the giving account
- C. Debit the asset account and credit the liability account
- D. Debit the revenue account and credit the expenditure account
Question 10
When a business incurs labour cost in installing a fixed asset, the cost is treated as
- A. additional cost to the asset
- B. business wages and salaries
- C. installation cost of the asset
- D. business cost of the asset
