JAMB Principles of Accounts CBT Questions and Answers 2027 for Candidates

Are you interested in scoring very high in JAMB? Preparing for JAMB Principles of Accounts requires more than just Here, there’s JAMB Questions and Answers on JAMB principles of Accounts to boost your performance. Candidates must understand accounting principles, apply double entry rules, interpret information and carry out calculations.

This guide contains 40 JAMB Principles of Accounts questions (with answers and explanations), a syllabus overview, revision strategies, common mistakes and methods for verifying information.

Important: The questions in this article are for practice. They are not leaked JAMB questions, official JAMB examination questions, or a substitute for the official JAMB syllabus.

Table of Contents

JAMB UTME Principles of Accounts at a Glance

Principles of Accounts is one of the subjects approved for the Unified Tertiary Matriculation Examination (UTME). JAMB’s 2026 training material includes Principles of Account(s) among the approved UTME subjects.

The best way to prepare is by:

Studying the topics and objectives covered in the JAMB syllabus
Understanding accounting concepts rather than learning isolated answers
Practising calculations regularly
Understanding how transactions affect accounts and the accounting equation
Using the JAMB Integrated Brochure and Syllabus System (IBASS) to find current requirements.

The JAMB official website has the tools that provide access to JAMB services and links to its syllabus system, while the JAMB Integrated Brochure and Syllabus System (IBASS) Eligibility Checker can help you find eligibility and UTME subject combinations.

What Is Principles of Accounts?

Principles of Accounts is the study of principles and procedures used to record, classify, summarise and interpret financial transactions and information.

Candidates at UTME level can expect questions on:

Bookkeeping and accounting concepts
Double-entry principles
Source documents and books of original entry
Ledger accounts and trial balance
Errors and suspense accounts
Cash books and petty cash
Bank reconciliation
Final accounts and adjustments
Partnership and company accounts
Public sector, and other specialist areas of accounting

A competent candidate should be able to explain concepts and apply their knowledge to practical accounting problems.

The Official Principles of Accounts JAMB Syllabus

JAMB directs candidates to its Integrated Brochure and Syllabus System (IBASS) for syllabus and programme-related information. The official JAMB website identifies IBASS as its syllabus system, and JAMB’s materials advise candidates to use IBASS for the e-Brochure and e-Syllabus.

The published Principles of Accounts syllabus objectives include developing candidates’ interest in the subject, practical accounting skills, the ability to apply and interpret accounting information, and awareness of the relevance of accounting information to businesses and government.

Major Areas Candidates Should Study

Based on the Principles of Accounts syllabus content, important areas include:

Nature and significance of bookkeeping and accounting
Principles of double entry
Ethics in accounting
Cash book and petty cash book
Bank transactions and bank reconciliation
Final accounts of a sole trader
Accounts of not-for-profit organisations
Manufacturing accounts
Departmental and branch accounts
Partnership accounts
Company accounts
Public sector accounting and related topics

The detailed syllabus contains specific learning objectives, so candidates should study the current version available through JAMB’s official channels rather than relying only on summaries from third-party websites.

40 JAMB Principles of Accounts Questions and Answers

Section A: Accounting Fundamentals

Question 1

The main purpose of bookkeeping is to

A. audit financial statements
B. record financial transactions systematically
C. determine government policy
D. calculate taxes only

Answer: B — Record financial transactions systematically.

Explanation: Bookkeeping primarily involves the systematic recording and classification of financial transactions. Accounting goes further by summarising, analysing and interpreting financial information.

Question 2

Which of the following is an example of an asset?

A. Capital
B. Loan from a bank
C. Furniture
D. Creditors

Answer: C — Furniture.

Explanation: Furniture is a resource owned or controlled by a business and is therefore an asset. A bank loan and creditors are liabilities, while capital represents the owner’s interest in the business.

Question 3

The accounting equation is expressed as

A. Assets = Capital − Liabilities
B. Assets = Capital + Liabilities
C. Capital = Assets + Liabilities
D. Liabilities = Assets + Capital

Answer: B — Assets = Capital + Liabilities.

Explanation: The accounting equation shows that the resources of a business are financed by the owner’s capital and liabilities owed to outsiders.

Question 4

Which accounting concept requires a business to be treated separately from its owner?

A. Consistency
B. Business entity
C. Prudence
D. Materiality

Answer: B — Business entity.

Explanation: The business entity concept separates the financial affairs of the business from the personal affairs of its owner.

Question 5

Information is useful to users of financial statements when it is

A. deliberately complex
B. relevant and reliable
C. always confidential
D. based on estimates only

Answer: B — Relevant and reliable.

Explanation: Useful accounting information should help users make decisions and should be sufficiently dependable for its intended purpose.

Section B: Double Entry and Ledger Accounts

Question 6

When cash is introduced into a business by the owner, the correct double entry is

A. Debit Capital, Credit Cash
B.Debit Cash, Credit Capital
C. Debit Purchases, Credit Cash
D.Debit Drawings, Credit Capital

Answer: B — Debit Cash, Credit Capital.

Explanation: Cash, an asset, increases and is debited. Capital increases and is credited.

Question 7

Goods purchased on credit for resale are recorded by debiting

A. Sales Account
B. Purchases Account
C. Cash Account
D. Capital Account

Answer: B — Purchases Account.

Explanation: Goods bought for resale are purchases. Where they are acquired on credit, Purchases is debited and the supplier’s account is credited.

Question 8

A credit sale of goods will result in

A. a debit to Sales and credit to Debtor
B. a debit to Debtor and credit to Sales
C. a debit to Cash and credit to Sales
D. a debit to Purchases and credit to Creditor

Answer: B — Debit Debtor and Credit Sales.

Explanation: The customer owes the business, so the debtor account is debited. Sales revenue increases and is credited.

Question 9

Which book of original entry is used to record credit purchases of goods for resale?

A. Sales Day Book
B. Purchases Day Book
C. Cash Book
D. Journal Proper

Answer: B — Purchases Day Book.

Explanation: The Purchases Day Book records credit purchases of goods intended for resale.

Question 10

A ledger is best described as

A. a document issued to a customer
B. a book containing classified accounts
C. a statement sent by a bank
D. a list of business assets

Answer: B — A book containing classified accounts.

Explanation: Transactions are posted from books of original entry into ledger accounts where they are classified according to their nature.

Section C: Trial Balance and Errors

Question 11

The main purpose of a trial balance is to

A. calculate profit directly
B. prove that all accounting records are free from errors
C. test the arithmetical accuracy of ledger postings
D. determine the value of stock

Answer: C — Test the arithmetical accuracy of ledger postings.

Explanation: A balanced trial balance provides some evidence of arithmetical accuracy, but it does not prove that every accounting error has been eliminated.

Question 12

Which error is most likely to be revealed by a trial balance?

A. Error of principle
B. Complete omission of a transaction
C. One-sided posting error
D. Compensating error

Answer: C — One-sided posting error.

Explanation: A transaction posted on only one side of the double-entry system can cause the trial balance totals to disagree.

Question 13

An error of principle occurs when

A. an entry is omitted completely
B. an amount is entered in the wrong class of account
C. the trial balance is added incorrectly
D. two errors cancel each other out

Answer: B — An amount is entered in the wrong class of account.

Explanation: For example, treating the purchase of machinery, a capital expenditure, as ordinary purchases is an error of principle.

Question 14

A suspense account is usually opened when

A. the business makes a profit
B. the cash book is balanced
C. the trial balance does not agree temporarily
D. stock is damaged

Answer: C — The trial balance does not agree temporarily.

Explanation: A suspense account may be used to make the trial balance totals agree while the cause of the difference is investigated.

Section D: Cash and Bank Transactions

Question 15

The petty cash book is mainly used to record

A. large capital expenditure
B. small recurring cash payments
C. credit sales
D. long-term loans

Answer: B — Small recurring cash payments.

Explanation: Petty cash is used for minor expenses such as transport, postage and small office purchases.

Question 16

Under the imprest system, the petty cashier is usually reimbursed by

A. the total amount originally advanced, regardless of expenditure
B. the amount spent during the period
C. the business’s total revenue
D. the bank balance

Answer: B — The amount spent during the period.

Explanation: Reimbursement restores the petty cash float to its agreed imprest amount.

Question 17

A cheque issued by a business but not yet presented to the bank is likely to cause

A. a difference between the cash book and bank statement balances
B. an increase in sales
C. an increase in stock
D. a reduction in capital

Answer: A — A difference between the cash book and bank statement balances.

Explanation: Timing differences between entries in the business’s cash book and transactions processed by the bank can create differences that are addressed through reconciliation.

Question 18

A bank reconciliation statement is prepared primarily to

A. calculate depreciation
B. explain differences between bank-related records
C. determine gross profit
D. prepare a manufacturing account

Answer: B — Explain differences between bank-related records.

Explanation: Reconciliation helps identify timing differences, omissions and other items affecting the balances shown by the cash book and bank statement.

Section E: Final Accounts and Adjustments

Question 19

Gross profit is calculated as

A. Sales − Cost of Sales
B. Sales + Expenses
C. Capital − Drawings
D. Assets − Liabilities

Answer: A — Sales − Cost of Sales.

Explanation: Gross profit measures the excess of sales revenue over the direct cost of goods sold.

Question 20

Which of the following is an example of a direct expense?

A. Office rent
B. Carriage inward
C. Advertising
D. Insurance of office equipment

Answer: B — Carriage inward.

Explanation: Carriage inward is generally associated with bringing goods purchased into the business and may form part of the cost of goods available for sale.

Question 21

Closing inventory is generally used in calculating

A. cost of sales
B. capital only
C. drawings only
D. bank charges only

Answer: A — Cost of sales.

Explanation: Closing inventory is deducted in determining the cost of goods sold during the accounting period.

Question 22

Depreciation represents

A. an increase in the market value of an asset
B. the systematic allocation of an asset’s depreciable cost over its useful life
C. the purchase of a new asset
D. a liability owed to creditors

Answer: B — Systematic allocation of an asset’s depreciable cost.

Explanation: Depreciation is an accounting allocation related to the use or consumption of the economic benefits of certain long-term assets.

Question 23

Outstanding expenses at the end of an accounting period should generally be

A. ignored until paid
B. treated as an asset only
C. recognised as an expense and related liability
D. deducted from capital without record

Answer: C — Recognised as an expense and related liability.

Explanation: Under accrual-based accounting principles, expenses relating to the period should be recognised even when payment has not yet been made.

Section F: Partnership Accounts

Question 24

A partnership is a business relationship involving

A. one person only
B. two or more persons carrying on a business under an agreement
C. government agencies only
D. shareholders in every case

Answer: B — Two or more persons carrying on a business under an agreement.

Explanation: Partnerships are governed by the terms agreed by the partners and applicable law.

Question 25

A partner’s drawings usually

A. increase the partner’s capital
B. reduce the partner’s interest in the business
C. increase sales revenue
D. create a trade creditor

Answer: B — Reduce the partner’s interest in the business.

Explanation: Drawings represent withdrawals of cash, goods or other benefits by an owner or partner for personal use.

Question 26

The partnership agreement may specify how

A. profits and losses are shared
B. every customer’s invoice is designed
C. bank statements are printed
D. government taxes are abolished

Answer: A — Profits and losses are shared.

Explanation: The partnership agreement can establish profit-sharing ratios and other arrangements between partners.

Section G: Company and Public Sector Accounting

Question 27

The owners of a limited liability company are generally known as

A. debtors
B. shareholders
C. creditors
D. auditors

Answer: B — Shareholders.

Explanation: Shareholders hold ownership interests represented by shares.

Question 28

A dividend is generally associated with

A. a distribution to shareholders
B. a payment to a supplier for goods purchased
C. a bank loan repayment only
D. depreciation of machinery

Answer: A — A distribution to shareholders.

Explanation: A dividend is a distribution that may be made to shareholders, subject to the company’s applicable rules and approvals.

Question 29

One major purpose of public sector accounting is to promote

A. secrecy in the use of public funds
B. accountability for public resources
C. private ownership of government property
D. elimination of all budgets

Answer: B — Accountability for public resources.

Explanation: Public sector accounting supports reporting, stewardship and accountability in the management of public funds and resources.

Section H: Accounting Calculations and Applications

Question 30

A business has total assets of ₦900,000 and liabilities of ₦350,000. Its capital is

A. ₦550,000
B. ₦900,000
C. ₦1,250,000
D. ₦350,000

Answer: A — ₦550,000.

Explanation: Using Assets = Capital + Liabilities:

Capital = Assets − Liabilities = ₦900,000 − ₦350,000 = ₦550,000.

Question 31

A business recorded sales of ₦800,000 and cost of sales of ₦500,000. Its gross profit is

A. ₦300,000
B. ₦500,000
C. ₦800,000
D. ₦1,300,000

Answer: A — ₦300,000.

Explanation: Gross Profit = Sales − Cost of Sales = ₦800,000 − ₦500,000.

Question 32

A machine costs ₦200,000 and is depreciated at 10% per annum using the straight-line method, assuming no residual value. Annual depreciation is

A. ₦2,000
B. ₦20,000
C. ₦180,000
D. ₦200,000

Answer: B — ₦20,000.

Explanation: 10% × ₦200,000 = ₦20,000.

Question 33

If opening inventory is ₦100,000, purchases are ₦600,000 and closing inventory is ₦150,000, ignoring other adjustments, the cost of goods available for sale less closing inventory is

A. ₦550,000
B. ₦700,000
C. ₦850,000
D. ₦450,000

Answer: A — ₦550,000.

Explanation: ₦100,000 + ₦600,000 − ₦150,000 = ₦550,000.

Question 34

A customer owing ₦50,000 pays ₦48,000 in full settlement. The discount allowed is

A. ₦50,000
B. ₦48,000
C. ₦2,000
D. ₦98,000

Answer: C — ₦2,000.

Explanation: Discount allowed = Amount owed − Amount received = ₦50,000 − ₦48,000.

Question 35

If a business pays ₦30,000 rent in advance for a future period, the unexpired portion at the reporting date is generally treated as

A. an asset
B. sales revenue
C. drawings
D. a liability only

Answer: A — An asset.

Explanation: A prepaid expense represents a future economic benefit because the payment relates to a period after the reporting date.

Section I: Source Documents and Accounting Concepts

Question 36

An invoice is commonly used as evidence of

A. a credit transaction involving goods or services
B. depreciation only
C. the owner’s drawings only
D. a bank reconciliation

Answer: A — A credit transaction involving goods or services.

Explanation: An invoice provides details of a transaction and may serve as a source document for recording it in the accounting records.

Question 37

The principle of consistency encourages a business to

A. change accounting methods every year without reason
B. apply accounting methods consistently where appropriate
C. ignore accounting standards
D. record personal and business transactions together

Answer: B — Apply accounting methods consistently where appropriate.

Explanation: Consistency helps users compare financial information over different accounting periods, while legitimate changes may sometimes be necessary and properly disclosed.

Question 38

The going concern concept assumes that a business

A. will necessarily close at the end of the year
B. is expected to continue operating for the foreseeable future, unless evidence suggests otherwise
C. has no liabilities
D. cannot make losses

Answer: B — Expected to continue operating.

Explanation: The going concern assumption influences how assets, liabilities and financial statements are prepared.

Question 39

The purchase of office equipment for long-term use is generally classified as

A. capital expenditure
B. revenue expenditure
C. drawings
D. sales

Answer: A — Capital expenditure.

Explanation: Expenditure on acquiring or improving a long-term asset used in the business is generally capital in nature.

Question 40

Which approach is most effective for solving an unfamiliar accounting calculation in an examination?

A. Guessing immediately
B. Memorising the answer pattern only
C. Identifying the accounting principle and working through the figures step by step
D. Skipping all calculations

Answer: C — Identify the principle and work step by step.

Explanation: Understanding the underlying accounting relationship reduces errors and makes it easier to handle questions presented in unfamiliar formats.

Additional Principles of Accounts Practice Questions

Try these questions before checking your notes.

Practice Question 1

A business has assets of ₦1,200,000 and capital of ₦800,000. Calculate its liabilities.

Answer: ₦400,000.

Working: Liabilities = Assets − Capital = ₦1,200,000 − ₦800,000.

Practice Question 2

Explain the difference between bookkeeping and accounting.

Answer: Bookkeeping focuses primarily on recording financial transactions systematically, while accounting includes recording as well as summarising, analysing, interpreting and communicating financial information.

Practice Question 3

State two errors that may not be disclosed by a trial balance.

Answer: Examples include an error of principle and complete omission of a transaction. Compensating errors may also fail to affect the agreement of the trial balance.

Practice Question 4

A business buys goods for resale on credit. State the accounts affected.

Answer: Debit Purchases Account and credit the relevant Creditor or Supplier Account.

Practice Question 5

Why should a candidate show workings when practising accounting calculations?

Answer: Showing workings enable one to discover his errors, aids better understanding and also helps in revision. However, it is important to note that you should always adhere to the instructions as stated in the examination.

How to Prepare Effectively for JAMB Principles of Accounts

Start Preparations with the Right Materials

JAMB’s own website and IBASS are your best resources for updated information on syllabus and programme requirements respectively. The JAMB website has links to their syllabus portal. On the other hand, IBASS has several tools which can be used to cross-check eligibility requirements into various Institutions as well as UTME subject combinations.

Lay a Firm Foundation Before Speed Training

You should start your preparations with the following:

Accounting equation
Double entry
Ledger accounts
Trial balance

These topics are very fundamental and are further applied in subsequent topics.

Practice calculations

You should spend more time practicing all calculations relating to:

Cost of sales
Gross and net profit
Depreciation
Capital and liabilities
Discounts
Cash and bank
Final accounts

Ensure that you cross-check your answers and also confirm if your working is correct.

Time yourself when attempting questions on the following

After studying a particular topic, you should time yourself when attempting mixed questions on that topic. This will help you understand if the problem is with the inadequate knowledge of the topic or poor question-reading skills.

Ensure that you keep an error book

This should contain all the questions you got wrong, reasons for getting them wrong, the correct accounting theory, and a similar question you can attempt to test your understanding. Instead of highlighting only questions you are confident of, it is more important to ensure that you understand where you kept going wrong with the questions you got wrong.

How to Verify Information on JAMB Principles of Accounts

Consult the Spokesperson or Portal of JAMB

When in doubt, always cross-check information with the JAMB portal or spokesperson. This is important as the JAMB portal carries all necessary information on their site. As such, other sites can only carry updated information so long as they are using JAMB’s portal to cross-reference.

Use the Eligibility Checker Tool On the JAMB IBASS Website

Although Principles of Account is a core subject, it does not mean it is a mandatory requirement into all courses. Different Institutions have different UTME requirements, as such, you should use the JAMB IBASS eligibility checker to confirm if Principles of Account is required into your course of interest.

Beware of Information On Other Websites and Social Media Platforms

While other educational sites can be useful in providing notes and practice materials, you should be wary of relying on them for:

Syllabus
UTME combination
Admission requirements
Registration guidelines
Announcements and updates on JAMB

Where other sites conflict with the JAMB portal or spokesperson, it is best to rely on the information from the JAMB portal or spokesperson.

Final Thoughts

Success in JAMB examination requires good preparation and understanding. Ensure that you understand the syllabus and practice mixed questions on calculations. You should also be able to apply your knowledge when answering questions instead of simply recalling related topics.

The 40 questions contained in this article are only a guide on how to prepare for the examination. It is important to ensure that you practice independently and also rely on your own effort to prepare for the examination.

admin

About the Author

Sylvester Victor

The founder of infoshoutloud has been publishing news on Exams, Post UTME, Admission and career opportunities with over six years of experience.

                                           DISCLAIMER:

Infoshoutloud.com.ng provides update on Education and career opprtunities and do not offer jobs to people. Our team will not request for money or involve in any form of trade by bater, always visit the official website when need arises for verification.