Jamb Accounting Past Questions For Year 1997
Question 41
Which of the following stock valuation methods is suitable under inflationary conditions?
- A. FIFO
- B. LIFO
- C. Simple average
- D. Weighted average
Question 42
Given:
Capital at the beginning...............N20 000
Drawings...............................N3 000
Capital................................N30 000
New capital introduced.................N8 000
What is the profit for the period?
- A. N4 000
- B. N5 000
- C. N6 000
- D. N8 000
Question 43
Alabede (NIG) limited issued 50 000 ordinary shares of N1 each at a market value of N2.50 each. the share premium is?
- A. N125 000
- B. N500 000
- C. N50 000
- D. N25 000
Question 44
Share premium can be used to?
i. write off discount on shares
ii. give loans to directors
iii.pay dividends
iv. pay company's formation expenses.
- A. i and iv only
- B. i and iii only
- C. ii and iii only
- D. iii and iv only
Question 45
Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a salary of N9 000. In one accounting period, the business recorded a loss of N1 500 (before deduction of Faruk's salary). The appropriate distribution of the net loss would be?
- A. Faruk, (N450); Osawe, (N1 050)
- B. Faruk, (N3 150); Osawe, (N7350)
- C. Faruk, (2 250); Osawe, (N7 350)
- D. Faruk, (N450); Osawe, (N1 050)
