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WAEC - Accounts Principles Of Accounts (1989)

1
The bank column in the cash book shows a credit balance of N180. This means
Answer
(D)
an overdraft of N180
2
T. Trader sets aside from his private funds n1,500 for business purposes. The N1.500 would be referred to as
Answer
(A)
capital
3
When goods are sold for cash the credit entry goes to the
Answer
(D)
sales account
4
The sales account is written up from
Answer
(E)
both credit and cash sales
5
The petty cash book can have
Answer
(A)
a debit balance only
6
Which of the following may have been recorded in the cash book and fail to appear in the Bank statement?
Answer
(C)
bank lodgements
7
Which of the following accounts belongs to the personal ledger?
Answer
(D)
depreciation account
8
Which of the following accounts belongs to the private ledger?
Answer
(A)
drawing accounts
9
A cheque for N400 drawn in favour of Jeje was posted to the credit of his account. The entry necessary to correct the error is
Answer
(D)
debit Jeje's account N800, credit suspense account N800
10
A sales for N2,570 was recorded in the day book as N2,750. The error committed was
Answer
(D)
error of original entry
11
Which of the following would be posted to the proprietor's capital account?
Answer
(D)
net profit
12
The drawings account of a sole proprietorship is transferred to the
Answer
(A)
capital account
13
A business marked up its cost by 50%. This would mean a gross profit of
Answer
(E)
33\(\frac{1}{3}\)% on the selling price
14
Which of the following show s the stock at the start of an accounting period?
Answer
(B)
current assets in the balance sheet
15
The balance in the purchases ledger control account is
Answer
(D)
the total of the creditors
16
Discount allowed would appear on the
Answer
(D)
credit side of the sales ledger control account
17
The balance the provision for depreciation account is shown in the
Answer
(B)
trial balance as a credit
18
The concept of Double Entry Book-Keeping states that
Answer
(B)
for every debit entry there must be a corresponding credit entry
19
Outstanding rent of N300 is paid by the proprietor. The effect on the balance sheet is that
Answer
(B)
both the liability and asset are decreased
20
Which of the following in a classified form contains a permanent record of all transactions? The
Answer
(C)
ledger
21
When a buyer returns damages goods to the seller, the buyer receives a
Answer
(B)
credit note
22
Trade discount is
Answer
(C)
allowance off price list
23
Pending the location of error, the difference disclosed in the trial balance is normally posted to
Answer
(C)
a suspense account
24
Which of the following is not true of capital expenditure? i. assets acquired for the purpose of earning income ii. extension of office building iii. it is incurred and its full benefits consumed in one period of account
Answer
(E)
iii
25
Which of the following may cause depreciation? i. wear and tear ii. obsolescence and passage of time iii. fluctuation
Answer
(B)
i and ii
26
A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. Using the straight line method, the annual depreciation is
Answer
(C)
N2,900
27
A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400.Using the reducing balance method what will be the depreciation charge for year 2 at 20%? (ignoring residual value)
Answer
(D)
N1,920
28
A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. Using the reducing balance method, what us the net book value at the end of the year 2? (ignoring residual value)
Answer
(E)
N7,680
29
A machine cost N12,000 and has a useful life of 4 years and an expected disposal value of N400. The accumulated depreciation at the end of the year 3 using the straight line method is
Answer
(C)
N8,700
30
Factory cost consists of
Answer
(D)
direct6 materials, direct labour, direct expenses and factory overhead
31
The term bad debt means
Answer
(C)
debt that can not be collected
32
a subsidiary record is a book
Answer
(C)
of original entry
33
Which of the following does not belong to the group?
Answer
(E)
a creeditor
34
Use the following information to answer the given question: SALES LEDGER CONTROL ACCOUNT
\(\begin{array}{c|c} 1986 & & N & 1986 & & N \\ \hline Jan. 1 & \text{Balance b/d} & 1,300 & Jan.1 & \text{Balance b/d} & 86 \\ 31 & sales & 7,630 & & bank & 6,555 \\ & \text{dishonoured cheques} & 250 & & discount& 345 \\ & \text{stopped cheques} & 100 & & returns & 130 \\ & \text{balance c/d} & 92 & & \text{Purchases ledger} & 360 \\ & & & & \text{balance c/d} & 1,896 \\ & & 9,372 & & & 9,372 \\ Feb. 1 & \text{balance b/d} & 1,896 & Feb.1 & \text{balance b/d} & 92 \end{array}\)
The amount of N7,630 represents
Answer
(A)
total credit sales
35
Use the following information to answer the given question: SALES LEDGER CONTROL ACCOUNT
\(\begin{array}{c|c} 1986 & & N & 1986 & & N \\ \hline Jan. 1 & \text{Balance b/d} & 1,300 & Jan.1 & \text{Balance b/d} & 86 \\ 31 & sales & 7,630 & & bank & 6,555 \\ & \text{dishonoured cheques} & 250 & & discount& 345 \\ & \text{stopped cheques} & 100 & & returns & 130 \\ & \text{balance c/d} & 92 & & \text{Purchases ledger} & 360 \\ & & & & \text{balance c/d} & 1,896 \\ & & 9,372 & & & 9,372 \\ Feb. 1 & \text{balance b/d} & 1,896 & Feb.1 & \text{balance b/d} & 92 \end{array}\)
The sum of N6,555 described as 'Bank' represents
Answer
(C)
receipts from trade debtors only
36
Use the following information to answer the given question: SALES LEDGER CONTROL ACCOUNT
\(\begin{array}{c|c} 1986 & & N & 1986 & & N \\ \hline Jan. 1 & \text{Balance b/d} & 1,300 & Jan.1 & \text{Balance b/d} & 86 \\ 31 & sales & 7,630 & & bank & 6,555 \\ & \text{dishonoured cheques} & 250 & & discount& 345 \\ & \text{stopped cheques} & 100 & & returns & 130 \\ & \text{balance c/d} & 92 & & \text{Purchases ledger} & 360 \\ & & & & \text{balance c/d} & 1,896 \\ & & 9,372 & & & 9,372 \\ Feb. 1 & \text{balance b/d} & 1,896 & Feb.1 & \text{balance b/d} & 92 \end{array}\)
The balance of N92 represents the i. amount necessary to balance the account ii. sum due to the customers iii. amount due from the customers
Answer
(B)
ii
37
Use the following information to answer the given question: SALES LEDGER CONTROL ACCOUNT
\(\begin{array}{c|c} 1986 & & N & 1986 & & N\\ \hline Jan. 1 & \text{Balance b/d} & 1,300 & Jan.1 & \text{Balance b/d} & 86 \\ 31 & sales & 7,630 & & bank & 6,555 \\ & \text{dishonoured cheques} & 250 & & discount& 345 \\ & \text{stopped cheques} & 100 & & returns & 130 \\ & \text{balance c/d} & 92 & & \text{Purchases ledger} & 360 \\ & & & & \text{balance c/d} & 1,896 \\ & & 9,372 & & & 9,372 \\ Feb. 1 & \text{balance b/d} & 1,896 & Feb.1 & \text{balance b/d} & 92 \end{array}\)
The items 'Purchases ledger N360' means i. cash purchases during the period ii. credit purchases during the period iii. trade debtors set off against debts on purchases
Answer
(C)
iii
38
Use the following information to answer the given question: SALES LEDGER CONTROL ACCOUNT
\(\begin{array}{c|c} 1986 & & N & 1986 & & N \\ \hline Jan. 1 & \text{Balance b/d} & 1,300 & Jan.1 & \text{Balance b/d} & 86 \\ 31 & sales & 7,630 & & bank & 6,555 \\ & \text{dishonoured cheques} & 250 & & discount& 345 \\ & \text{stopped cheques} & 100 & & returns & 130 \\ & \text{balance c/d} & 92 & & \text{Purchases ledger} & 360 \\ & & & & \text{balance c/d} & 1,896 \\ & & 9,372 & & & 9,372 \\ Feb. 1 & \text{balance b/d} & 1,896 & Feb.1 & \text{balance b/d} & 92 \end{array}\)
The balance of the provision for depreciation account is shown in the
Answer
(E)
balance sheet as a current liability
39
Use the following information to answer the given question:
Issued capital.................100,000
Ordinary shares................40,000
Preference shares..............30,000
Reserves.......................10,000
Debentures.....................60,000
Current........................150,000
Fixed assets...................90,000
Current assets.................240,000
What is the total of Net Assets of the business?
Answer
(B)
N180,000
40
Use the following information to answer the given question:
Issued capital.................100,000
Ordinary shares................40,000
Preference shares..............30,000
Reserves.......................10,000
Debentures.....................60,000
Current........................150,000
Fixed assets...................90,000
Current assets.................240,000
What is the capital attributable to the equity shareholders?
Answer
(D)
N180,000
41
Use the following information to answer the given question:
Issued capital.................100,000
Ordinary shares................40,000
Preference shares..............30,000
Reserves.......................10,000
Debentures.....................60,000
Current........................150,000
Fixed assets...................90,000
Current assets.................240,000
What is the total of the loan capital of the business?
Answer
(D)
N60,000
42
Use the following information to answer the given question:
Issued capital.................100,000
Ordinary shares................40,000
Preference shares..............30,000
Reserves.......................10,000
Debentures.....................60,000
Current........................150,000
Fixed assets...................90,000
Current assets.................240,000
What is the working capital?
Answer
(A)
N90.00
43
Use the following information to answer the given question:
Issued capital.................100,000
Ordinary shares................40,000
Preference shares..............30,000
Reserves.......................10,000
Debentures.....................60,000
Current........................150,000
Fixed assets...................90,000
Current assets.................240,000
What is the percentage of equity to the total capital employed?
Answer
(B)
12%
44
Use the following information to answer the given question
MANUFACTURING AND TRADING ACCOUNTS
\(\begin{array}{c|c} & N & & N \\ \hline \text{Opening raw material} & 10,000 & \text{Manufacturing cost} & 114,000 \\ purchases & 60,000 \\ & \overline{70,000} & & \\ \text{Less: Closing raw material} & 8,000 & & \\ & \overline{62,000} & & \\ \text{Direct labour} & 20,000 & & \\ \text{Direct expenses} & 20,000 & & \\ \text{Factory overhead} & 12,000 & & \\ & \overline{114,000} & & \overline{114,000} \\ & & & \text{_______} \\ \text{Stock b/d} & \overline{10,000} & sales & X \\ Purchases & X & \text{Less sales returns} & 5,000 \\ \text{Manufacturing cost} & 114,000 & & \\ & \overline{144,000} & & \\ \text{Stock c/d} & 12,000 & & \\ & \overline{132,000} & & \\ \text{Gross profit 20% on sales } & \text{_______} & & \text{_______}\\ & X & & X \end{array}\)
What is the total of raw materials consumed?
Answer
(D)
N62,000
45
Use the following information to answer the given question
MANUFACTURING AND TRADING ACCOUNTS
\(\begin{array}{c|c} & N & & N \\ \hline \text{Opening raw material} & 10,000 & \text{Manufacturing cost} & 114,000 \\ purchases & 60,000 \\ & \overline{70,000} & & \\ \text{Less: Closing raw material} & 8,000 & & \\ & \overline{62,000} & & \\ \text{Direct labour} & 20,000 & & \\ \text{Direct expenses} & 20,000 & & \\ \text{Factory overhead} & 12,000 & & \\ & \overline{114,000} & & \overline{114,000} \\ & & & \text{_______} \\ \text{Stock b/d} & \overline{10,000} & sales & X \\ Purchases & X & \text{Less sales returns} & 5,000 \\ \text{Manufacturing cost} & 114,000 & & \\ & \overline{144,000} & & \\ \text{Stock c/d} & 12,000 & & \\ & \overline{132,000} & & \\ \text{Gross profit 20% on sales } & \text{_______} & & \text{_______}\\ & X & & X \end{array}\)
What is the prime cost?
Answer
(D)
N102,000