JAMB Principles of Accounts 2018 past questions

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

Ten questions from the 2018 JAMB Principles of Accounts paper, with answers and explanations. We hold 81 questions from this paper, and the Skolra app has all of them.

JAMB Principles of Accounts 2018 questions and answers

1.
A provision for bad debt account had N33,800 at the beginning of the year and N4,220 at the close of the year. If bad debts are calculated at the rate of 1/20% of annual credit sales, what was the credit sales for the period?
1. A
  ₦67,600,000
2. B
  ₦844,000
3. C
  ₦59,160,000
4. D
  ₦8,440,000
  Correct
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Answer: D
First settle the rate, because that is where most candidates lose this question. 1/20% is one-twentieth of one per cent, not one-twentieth. So the rate = (1 ÷ 20) × 1% = 0.05% = 0.05/100 = 1/2000 of credit sales.
Next, decide which balance to use. The provision for bad debts account carries forward from year to year, so the ₦33,800 opening balance was created out of last year's credit sales. It is the closing balance of ₦4,220 that is the provision required for THIS year, and that is the figure struck as 1/20% of this year's credit sales.
Let credit sales = S:
(1/2000) × S = ₦4,220
S = ₦4,220 × 2,000 = ₦8,440,000
2.
The control account is used in facilitating?
1. A
  the location of errors in the ledgers
  Correct
2. B
  the valuation of closing inventory
3. C
  the preparation of a bank reconciliation statement
4. D
  the computation of depreciation charges
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Answer: A
A control account is a total account — the sales ledger control account (total debtors) and the purchases ledger control account (total creditors). It is written up independently, using the totals taken from the books of original entry: sales day book, purchases day book, returns books, the cash book and the discount columns.
3.
which of the following affects the accuracy and authenticity of trial balance?
1. A
  Two errors of equal amount cancelling each other on opposite sides
2. B
  Complete omission of a transaction from the books of account
3. C
  Posting the debit side of a transaction without its corresponding credit
  Correct
4. D
  Treating the purchase of a motor vehicle as motor running expenses
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Answer: C
Remember what a trial balance is actually for: it is only a test of the arithmetical accuracy of the ledger. Every transaction is entered twice, once on the debit side and once on the credit side, so when you extract the balances the debit total must equal the credit total. It follows that the only error which can disturb that agreement is a one-sided error — where one leg of the double entry is missing, entered at a wrong figure, or put on the wrong side.
4.
The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the________
1. A
  Public Accounts Committee of the National Assembly
2. B
  Office of the Auditor-General for the Federation
  Correct
3. C
  Office of the Accountant-General of the Federation
4. D
  Budget Office of the Federation
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Answer: B
The correct answer is the Office of the Auditor-General for the Federation.
Under Section 85 of the 1999 Constitution (as amended), the Auditor-General audits the public accounts of the Federation and of all offices and courts, and reports his findings to the National Assembly. His work is to ascertain that every naira released was spent on the purpose for which the National Assembly appropriated it, and that the spending followed the Appropriation Act, the Financial Regulations and Treasury Circulars, that is, the approved guidelines. He is independent of the spending ministries, which is why the checking duty is placed on him.
5.
A machine bought for N35,000 was estimated to have a life span of 5 years with a scrap value of N9,000.

If the scrap value is presently N15,000, what will be the yearly depreciation using the straight line method?
1. A
  ₦3,000
2. B
  ₦4,000
  Correct
3. C
  ₦7,000
4. D
  ₦5,200
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Answer: B
Under the straight line method, the same amount is written off every year:
Annual depreciation = (Cost − Scrap value) ÷ Estimated life
The cost is ₦35,000 and the life is 5 years. The question tells you the scrap value is presently ₦15,000, so that current figure is the one to use, not the old estimate of ₦9,000.
Depreciable amount = ₦35,000 − ₦15,000 = ₦20,000
Yearly depreciation = ₦20,000 ÷ 5 = ₦4,000
6.
Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea's capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January ,2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup's capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. What is the interest on the drawings of Tea?
1. A
  ₦1,300.00
2. B
  ₦704.17
  Correct
3. C
  ₦650.00
4. D
  ₦758.33
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Answer: B
Interest on drawings is not charged on the full year. It is charged only for the period each amount stayed out of the business, that is from the date of the drawing to the end of the financial year (31st December). Use the product method: multiply each drawing by the months outstanding, add up, then apply the 10%.
Tea's drawings:
₦3,000 on 31 Jan → 11 months: 3,000 × 11/12 = ₦2,750
₦2,000 on 31 Mar → 9 months: 2,000 × 9/12 = ₦1,500
₦4,000 on 1 Jul → 6 months: 4,000 × 6/12 = ₦2,000
₦1,500 on 30 Sep → 3 months: 1,500 × 3/12 = ₦375
₦2,500 on 1 Nov → 2 months: 2,500 × 2/12 = ₦416.67
Total products = ₦7,041.67
7.
The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a
1. A
  capital reserve
2. B
  revaluation reserve
3. C
  goodwill
  Correct
4. D
  general reserve
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Answer: C
When a new partner joins an existing firm, he is not starting from zero — he is buying into a business that already has a good name, loyal customers and a steady flow of trade. The old partners built that reputation, so the incoming partner pays them something extra, over and above the capital he brings in. That extra amount is goodwill (often called the premium for goodwill).
Goodwill is an intangible asset. On admission it is credited to the old partners' capital accounts in their old profit-sharing ratio, because it is their effort over the years that created it.
So the compensation for the reputation built up by the old partners is goodwill.
8.
A partnership's internal regulation are set out by________---
1. A
  the partnership deed
  Correct
2. B
  the Partnership Act
3. C
  the memorandum of association
4. D
  the articles of association
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Answer: A
A partnership comes into being by agreement among the partners, and that agreement is written down in the partnership deed (also called the articles of partnership). This is the document that lays down the firm's internal rules: how much capital each partner brings in, the profit and loss sharing ratio, interest on capital and on drawings, partners' salaries, how goodwill is treated, and the terms for admitting, retiring or expelling a partner.
9.
A partnership deed is used to____________
1. A
  register the firm with the Corporate Affairs Commission
2. B
  record the day-to-day business transactions of the firm
3. C
  state the rights, duties and terms agreed upon by the partners
  Correct
4. D
  show the assets and liabilities of the firm on a given date
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Answer: C
A partnership deed (also called the articles of partnership or partnership agreement) is the written agreement the partners draw up when the firm is formed. Its whole purpose is to state the rights, duties and terms agreed upon by the partners — how much capital each one brings in, the profit and loss sharing ratio, interest on capital and on drawings, partners' salaries, who takes part in management, and what happens on admission, retirement, death or dissolution.
So the deed governs the relationship between the partners, while the books and final accounts govern the figures.
10.
The rent expense for Trendy store is ₦3500. Trendy store has three departments; jewelry, hair dressing, and clothing. The floor spaces occupied by the departments are 3:2:5 respectively. What is the rent allocated to clothing department?
1. A
  ₦1,166.67
2. B
  ₦1,750.00
  Correct
3. C
  ₦700.00
4. D
  ₦1,050.00
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Answer: B
In departmental accounts, an expense like rent is shared out (apportioned) using a fair basis. The fair basis for rent, rates and building insurance is always the floor space occupied by each department.
Step 1 - Add the ratio: jewelry : hair dressing : clothing = 3 : 2 : 5
Total parts = 3 + 2 + 5 = 10 parts
Step 2 - Find one part:
₦3,500 ÷ 10 = ₦350 per part
Step 3 - Clothing takes 5 parts:
5 × ₦350 = ₦1,750
You can also write it directly as 5/10 × ₦3,500 = ₦1,750.
Check your work: jewelry = 3/10 × 3,500 = ₦1,050; hair dressing = 2/10 × 3,500 = ₦700; clothing = ₦1,750. Add them: 1,050 + 700 + 1,750 = ₦3,500, exactly the rent paid. A correct apportionment must always add back to the total expense.

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JAMB Principles of Accounts 2018 past questions

JAMB Principles of Accounts 2018 questions and answers

Practise all 81 questions we hold from the 2018 paper, on a timed CBT screen

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