JAMB Principles of Accounts 2008 past questions

Checked by the Skolra question team · Last updated 23 October 2026

Ten questions from the 2008 JAMB Principles of Accounts paper, with answers and explanations. We hold 47 questions from this paper, and the Skolra app has all of them.

JAMB Principles of Accounts 2008 questions and answers

1.Commission-on-turnover is charged on?
1. A
  interest credited on a savings account
2. B
  the closing credit balance of a current account
3. C
  total withdrawals made from a current account
  Correct
4. D
  total lodgements paid into a current account
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Answer: C
Commission on turnover (COT) is the charge a bank makes on a current account holder for operating the account. The bank looks at the customer's debit turnover for the period — that is, the total value of money taken OUT of the account (cheques drawn, transfers out, cash withdrawn) — and charges a small rate on it, traditionally ₦5 per ₦1,000 (₦5 per mille).
So COT is charged on the total withdrawals made from a current account. If a trader's withdrawals for the month total ₦400,000, COT at ₦5 per mille = 400,000 ÷ 1,000 × ₦5 = ₦2,000.
2.If a GSM operator based in Lagos supplies recharge cards to its branch in Akure, the head office can charge the goods at?
1. A
  market price or replacement price
2. B
  net realisable value or fair value
3. C
  cost price or selling price
  Correct
4. D
  wholesale price or discounted price
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Answer: C
This is branch accounts. Lagos is the head office and Akure is a dependent branch. When the head office sends goods to such a branch, it has only two accepted ways of pricing them on the invoice: at cost price or at selling price (cost plus a loading or mark-up, which is why it is also called the invoice price).
3.
$\begin{array}{c|c} \text{Capital} & 12,700 & \text{Purchases} & 7,100 \\ \hline \text{Debtors} & 400 & \text{Stationery} & 1,900 \\ \hline \text{Sales} & 2,400 & \text{Wages} & 1,230 \\ \end{array}$
Determine the closing balance of the cash book?
1. A
  ₦10,230
2. B
  ₦5,270
  Correct
3. C
  ₦25,730
4. D
  ₦4,870
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Answer: B
A cash book is simply the cash/bank account written in two columns. Everything on the left (debit) side is money received and everything on the right (credit) side is money paid out. So sort the figures first.
Receipts (Dr): Capital ₦12,700 + Debtors ₦400 + Sales ₦2,400 = ₦15,500
Payments (Cr): Purchases ₦7,100 + Stationery ₦1,900 + Wages ₦1,230 = ₦10,230
Closing balance = Receipts − Payments = ₦15,500 − ₦10,230 = ₦5,270. Because receipts are bigger, it is a debit balance: it is entered as "Balance c/d ₦5,270" on the credit side to close the book, then brought down on the debit side as the opening cash for the next period.
4.The salary of the chief Justice of the Federation is paid from the?
1. A
  Contingencies Fund
2. B
  Federation Account
3. C
  Capital Development Fund
4. D
  Consolidated Revenue Fund
  Correct
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Answer: D
This tests statutory (direct) charges in public sector accounting. Under section 84 of the 1999 Constitution, the remuneration, salaries and allowances of certain named officers — the President, the Vice-President, the Chief Justice of Nigeria and other Justices, the Auditor-General for the Federation and so on — "shall be a charge upon the Consolidated Revenue Fund of the Federation." So the Chief Justice's salary is paid from the Consolidated Revenue Fund, and because it is a statutory charge it does not have to be voted for in the Appropriation Act each year. That is the point of the question.
5.Receipt and payment account discloses?
1. A
  the assets and liabilities of the organisation at a particular date
2. B
  the accumulated fund built up by the members over the years
3. C
  all cash and bank receipts and payments made during the period
  Correct
4. D
  the surplus or deficit of income over expenditure for the period
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Answer: C
A Receipts and Payments Account is nothing more than a summarised cash book kept by a non-trading organisation such as a club, society or association. So the correct disclosure is all cash and bank receipts and payments made during the period.
6.Bariga, a stock broker bought stationery for ₦12000 by cash. To record this transaction, debit?
1. A
  purchases account with ₦12,000
2. B
  cash account with ₦12,000
3. C
  stationery account with ₦12,000
  Correct
4. D
  office equipment account with ₦12,000
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Answer: C
Every transaction has two sides: debit the account that receives the value, credit the account that gives the value.
Here Bariga's business receives stationery and parts with cash. So:
Dr Stationery Account ₦12,000
Cr Cash Account ₦12,000
The question asks for the debit side only, so the stationery account with ₦12,000 is the correct entry. Stationery is an expense of running the office, and expenses always increase on the debit side.
7.
Given:
Subscription in arrears 01/10/06...........₦2 000
Subscription in advance 01/10/06...........₦1 500
Subscription paid during the year..........₦7 000
Subscription in arrears 31/12/06...........₦3 000
Determine the amount of subscription included in the income and expenditure account for the year?
1. A
  ₦6 500
2. B
  ₦8 000
3. C
  ₦10 500
4. D
  ₦9 500
  Correct
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Answer: D
A club's Income and Expenditure Account is prepared on the accruals basis, so we must convert the cash actually received into the subscription earned for the year.
The rule to memorise is:
Subscription income = Cash received − Opening arrears + Closing arrears + Opening advance − Closing advance
8.
Given:
................Cash Book........................
Capital..........₦6 500........purchases.....₦12 250
Sales............₦30 000........Rent..........₦9 100
................................Motor vehicle.₦2 400
Find the bank balance?
1. A
  ₦10 350
2. B
  ₦12 750
  Correct
3. C
  ₦23 750
4. D
  ₦15 150
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Answer: B
The cash book is simply a ledger account with two sides, so treat it exactly like one: debit side = money coming in, credit side = money going out, and the balance is the difference between the two totals.
Step 1 - Total the receipts (debit side):
Capital ₦6,500 + Sales ₦30,000 = ₦36,500
Step 2 - Total the payments (credit side):
Purchases ₦12,250 + Rent ₦9,100 + Motor vehicle ₦2,400 = ₦23,750
Step 3 - Balance c/d:
₦36,500 − ₦23,750 = ₦12,750, a debit balance, meaning that amount of money is still with the business.
9.In partnership dissolution, an asset taken over by a partner is debited to?
1. A
  The account of the asset taken over
2. B
  The capital account of the partner
  Correct
3. C
  The cash and bank account
4. D
  The realisation account
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Answer: B
When a partnership is dissolved, every asset is first transferred to the Realisation Account at its book value: Dr Realisation, Cr Asset account. After that, whatever happens to each asset is recorded through the Realisation Account.
If an asset is sold to an outsider, cash comes in and we post Dr Cash/Bank, Cr Realisation. But where a partner simply takes over an asset, no money enters the firm. The agreed take-over value is charged against that partner, so the entry is:
Dr Partner's Capital Account
Cr Realisation Account
10.The medium that enables the ATM to read the account details and process transaction directly with the account held in the bank is the?
1. A
  magnetic strip encoded on the card
  Correct
2. B
  personal identification number keyed in at the machine
3. C
  magnetic ink character recognition code
4. D
  bar code printed at the back of the card
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Answer: A
Look at the back of any ATM card and you will see a dark band running across it. That band is the magnetic strip, and the customer's account number, bank and branch codes and card details are electronically encoded on it. Once the card is inserted, the card reader inside the ATM reads that strip, goes online to the bank's computer, and the withdrawal or enquiry is posted directly against the account held in the bank. That is exactly the "medium" the question is asking about.

The questions come from past JAMB, WAEC and NECO papers. We use software to help write the answer options and explanations, and every answer is checked twice before it goes on the site. How we check

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JAMB Principles of Accounts 2008 past questions

JAMB Principles of Accounts 2008 questions and answers

Practise all 47 questions we hold from the 2008 paper, on a timed CBT screen

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