Key Points in Principle of Accounting for JAMB 2026/2027 :- If there is one subject that teaches you how money moves in business and how organizations keep financial records, it is Principle of Accounting. Many candidates fear figures, some feel the rules are too many, but the wise ones know a simple truth. JAMB Accounting is not hard. Once you master the major principles, account types, double entry, ledger postings, and common adjustments, scoring above 70 becomes very easy. This guide contains the most important JAMB Accounting Key Points, simple explanations, and 40 practice Questions and Answers. If you follow this guide well, your confidence in accounting will grow quickly.
Key Points in Principle of Accounting for JAMB 2026/2027 With 40 Questions and Answers
1. Meaning and Purpose of Accounting
- Accounting is the process of recording, classifying, and summarizing financial transactions
- Helps in decision making
- Shows profit or loss
- Helps to monitor cash flow
- Helps businesses plan for the future
2. Basic Accounting Principles
- Double entry: every transaction has debit and credit
- Matching principle: expenses must match revenue
- Cost principle: record assets at original cost
- Consistency: use same methods every year
- Prudence: do not overstate profits
3. Types of Accounts
- Personal account: deals with people or organisations
- Real account: assets
- Nominal account: expenses, incomes, gains, and losses
- Golden rules:
- Debit the receiver, credit the giver
- Debit what comes in, credit what goes out
- Debit expenses, credit incomes
4. Books of Original Entry
- Cash book
- Sales journal
- Purchases journal
- Returns inward journal
- Returns outward journal
- General journal
5. Ledger and Trial Balance
- Ledger is the collection of all accounts
- Trial balance checks correctness of entries
- If debits equal credits, the ledger is balanced
6. Financial Statements
- Trading account determines gross profit
- Profit and loss account determines net profit
- Balance sheet shows assets, liabilities, and owner’s equity
- Capital = Assets minus Liabilities
Common JAMB Repeated Areas/JAMB Areas Concentration
Below are the jamb area of concentration;
- Double entry
- Ledger posting
- Trial balance
- Bank reconciliation
- Depreciation
- Capital and revenue expenditure
- Final accounts
- Errors and corrections
- Cashbook entries
- Accounting principles
Key Points in Accounting for JAMB 2026/2027 With 40 Questions and Answers
Below are 40 practice questions divided into sections.
PART I: Basic Principles (10 Questions)
- Accounting is the process of what?
Answer: Recording, classifying, and summarizing financial transactions - Double entry means what?
Answer: Every transaction has debit and credit - Prudence principle means what?
Answer: Do not overstate profits - Matching principle means what?
Answer: Match expenses with revenue - Capital is what?
Answer: Owner’s investment in the business - Assets minus liabilities equals what?
Answer: Capital - Expenses are recorded on which side?
Answer: Debit - Incomes are recorded on which side?
Answer: Credit - Real accounts deal with what?
Answer: Assets - Nominal accounts deal with what?
Answer: Expenses and incomes
PART II: Books and Ledger (10 Questions)
- Cash book records what?
Answer: Cash and bank transactions - Sales journal records what?
Answer: Credit sales - Purchases journal records what?
Answer: Credit purchases - Returns inward journal records what?
Answer: Goods returned by customers - Returns outward journal is for what?
Answer: Goods returned to suppliers - Ledger is what?
Answer: A collection of all accounts - If debit equals credit in the trial balance, it means what?
Answer: The ledger is arithmetically correct - Journal is also called what?
Answer: Book of original entry - Wages appear in which account?
Answer: Expense account - Discount allowed is what?
Answer: Expense
Also Read: Key Points in Biology for JAMB 2026/2027 With 60 Questions and Answers
PART III: Financial Statements (10 Questions)
- Trading account calculates what?
Answer: Gross profit - Profit and loss account calculates what?
Answer: Net profit - Balance sheet shows what?
Answer: Assets, liabilities, and capital - Sales minus cost of goods sold equals what?
Answer: Gross profit - Depreciation is charged on what?
Answer: Fixed assets - Salaries appear in which account?
Answer: Profit and loss account - Machinery is which type of asset?
Answer: Fixed asset - Loan from bank is what?
Answer: Liability - Closing stock appears in what?
Answer: Trading account and balance sheet - Drawings reduce what?
Answer: Capital
PART IV: Accounting Errors (10 Questions)
- Error of omission means what?
Answer: Transaction not recorded - Error of commission means what?
Answer: Wrong account of same class - Error of principle means what?
Answer: Wrong class of account - Transposition error occurs when what?
Answer: Figures are wrongly arranged - Suspense account corrects what?
Answer: Trial balance differences - A debit entered as credit is what?
Answer: Reversal error - Error not affecting trial balance is called what?
Answer: Two-sided error - Overcasting means what?
Answer: Excess total - Under-casting means what?
Answer: Less total - Error discovered after preparation of final accounts requires what?
Answer: Adjustment entry
Frequently Asked Questions (FAQs)
How many questions does JAMB set for Accounting?
JAMB question for accounting is 40 questions.
Does JAMB repeat Accounting topics?
Yes. Double entry, ledger, trial balance, and final accounts repeat often.
What is the hardest part of Accounting?
Double entry for beginners, but it becomes easy with practice.
How can I score high in JAMB Accounting?
Master principles, practise many questions, and understand ledger postings.
Do I need calculations for JAMB Accounting?
Yes, but they are simple and follow basic rules.
Conclusion
Principle of Accounting becomes very simple when you understand double entry, books of accounts, ledger posting, financial statements, and corrections of errors. These topics appear every year, which makes preparation very easy. The 40 practice questions in this guide help you understand JAMB patterns and build real confidence. Study consistently, practice past questions, and revisit key principles often. That is how you score above 70 in Accounting.
