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WAEC - Accounts Principles Of Accounts (1991)

1
When shares are oversubscribed, the promoter nay decide to scale down the number of shareholding when this is done, the shares are being
Answer
(C)
issued on prorata
2
Preliminary expenses of a limited liability company are
Answer
(C)
fictitious assets
3
In government imprest system the amount reimbursed is the
Answer
(B)
amount of the float
4
Reccurrent expenditure of government is paid from
Answer
(B)
consolidated revenue fund
5
Which of the following is related to debtors account?
Answer
(D)
sales ledger
6
The price paid for the purchase of for the purchase of a business is
Answer
(B)
credited to the cash account and debited to the vendor's account
7
Depreciation is
Answer
(D)
the cost of repairs incurred on a fixed asset
8
Where there is provision for depreciation account, fixed assets must be shown in the Balance Sheet at the i. written down values ii. historical costs less depreciation for a period only iii. historical costs less total depreciation to date
Answer
(A)
i
9
N100 received from Laifat was entered on the payments side of the cash book with the double entry completed in her account. The correcting journal entries are
Answer
(C)
credit Latifa's account, debit cash book with N200
10
Discount allowed is a charge to
Answer
(C)
profit and loss account
11
Which of the following is in the personal Ledger?
Answer
(D)
debtors account
12
Acquash has sold goods on credit and received N2,200 in cash from debtors. At the end of the previous year N500 was owed by customers. The balance outstanding this year is N300. sales for the year amounted to
Answer
(D)
N1,800
13
The authorized share capital of a limited liability company is the number of shares
Answer
(C)
approved in the memorandum of association
14
The document evidencing a disbursement of government fund is known as
Answer
(D)
payment voucher
15
The authority of the accountant-General to disburse from government fund is called
Answer
(B)
warrant
16
Where the cash book does not show a credit balance in a bank reconciliation: Unpresented cheques are book i. added to the cash book balance ii. added to the bank statement balance iii. deducted from the cash book balance
Answer
(A)
i
17
If the Opening stock is undervalued
Answer
(A)
goods available would be understated and gross profit overstated
18
Capital is the
Answer
(A)
liability of tthe business to its proprietor
19
Carriage outwards is accounting term for amount spent on
Answer
(B)
goods sold
20
In a manufacturing organization, which of the following expenses does not elate to cost of production?
Answer
(D)
administration overhead
21
The cost of goods sold at N32,000. The gross profit is 25% on cost. Returns inward amounts to N2,000, What is the value of sales?
Answer
(C)
N40,000
22
Which of the following accounts are treated in the nominal ledger? i. wages ii. discounts allowed iii. purchases
Answer
(E)
i and ii
23
The trading Account is usually headed
Answer
(A)
for the year ended............19 x 1
24
The capital sum which represents the difference between the assets and liabilities of a society or club is referred to as
Answer
(C)
accumulated fund
25
Which of the following statements is not true of a non-profit making organization?
Answer
(D)
receipts and Payments account is a substitute for expenditure account
26
A business which converts raw materials to finished goods prepares
Answer
(E)
manufacturing, trading, profit and loss account and balance sheet
27
Payment of salaries to partners is
Answer
(C)
an appropriation of divisible profit
28
Accounting term used to describe the excess of current assets over current liabilities is
Answer
(B)
working capital
29
A delivery van was bought on credit. The transaction would be entered by the customer first in the
Answer
(E)
journal proper
30
Which of the following is not a liability?
Answer
(C)
prepayment
31
Use the following information to answer the given question
\(\begin{array}{c|c} & \text{1/1/86} & \text{31/12/86} \\ & N & N \\ \hline creditors & 5,000 & 8,000 \\ stock & 1,200 & 1,100 \\ \text{Mark-up} & \text{25%} & \\ \text{Cash paid to creditors} & N7,000 & \end{array}\)
Purchases for the year amounted to
Answer
(A)
N10,000
32
Use the following information to answer the given question
\(\begin{array}{c|c} & \text{1/1/86} & \text{31/12/86} \\ & N & N \\ \hline creditors & 5,000 & 8,000 \\ stock & 1,200 & 1,100 \\ \text{Mark-up} & \text{25%} & \\ \text{Cash paid to creditors} & N7,000 & \end{array}\)
Cost of sales is
Answer
(A)
N10,100
33
Use the following information to answer the given question
\(\begin{array}{c|c} & \text{1/1/86} & \text{31/12/86} \\ & N & N \\ \hline creditors & 5,000 & 8,000 \\ stock & 1,200 & 1,100 \\ \text{Mark-up} & \text{25%} & \\ \text{Cash paid to creditors} & N7,000 & \end{array}\)
Gross profit is
Answer
(B)
N2,525
34
Use the following information to answer the given question
\(\begin{array}{c|c} & \text{1/1/86} & \text{31/12/86} \\ & N & N \\ \hline creditors & 5,000 & 8,000 \\ stock & 1,200 & 1,100 \\ \text{Mark-up} & \text{25%} & \\ \text{Cash paid to creditors} & N7,000 & \end{array}\)
Sales for the year amounted to
Answer
(A)
N12,625
35
Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Stock in hand} & 4,000 \\ \text{Purchases for resale} & 5,000 \\ Sales & 3,500 \\ Margin & \text{20%}\end{array}\)
The closing stock is
Answer
(A)
N6,200
36
Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Balance brought forward} & 500Cr \\ \text{Amount paid to suppliers} & 12,000 \\ \text{Returns outwards} & 150 \\ \text{Balance carried forward} & 650 Cr \end{array}\)
What is the value of purchases?
Answer
(C)
N12,300
37
Use the following information to answer the given question
\(\begin{array}{c|c} & DR & CR \\ & N & N \\ \hline \text{Goodwill} & 10,000 & \\ \text{Plant and Machinery} & 32,000& \\ \text{Freehold premises} & 50,000& \\ stock & 15,000& \\ debtors & 12,500 & \\ \text{Cash in bank} & 7,500 & \\ \text{cash in hand} & 2,000 & \\ \text{Profit and loss account} & & 34,000 \\ \text{Accrued rent} & & 500 \\ \text{Sundry creditors} & & 9500 \\ Capital & \overline{129,000} & \overline{129,000}\end{array}\)
What is the value of fixed tangible assets?
Answer
(C)
N82,000
38
Use the following information to answer the given question
\(\begin{array}{c|c} & DR & CR \\ & N & N \\ \hline \text{Goodwill} & 10,000 & \\ \text{Plant and Machinery} & 32,000& \\ \text{Freehold premises} & 50,000& \\ stock & 15,000& \\ debtors & 12,500 & \\ \text{Cash in bank} & 7,500 & \\ \text{cash in hand} & 2,000 & \\ \text{Profit and loss account} & & 34,000 \\ \text{Accrued rent} & & 500 \\ \text{Sundry creditors} & & 9500 \\ Capital & \overline{129,000} & \overline{129,000}\end{array}\)
What is the value of current liabilities?
Answer
(B)
N10,000
39
Use the following information to answer the given question
\(\begin{array}{c|c} & DR & CR \\ & N & N \\ \hline \text{Goodwill} & 10,000 & \\ \text{Plant and Machinery} & 32,000& \\ \text{Freehold premises} & 50,000& \\ stock & 15,000& \\ debtors & 12,500 & \\ \text{Cash in bank} & 7,500 & \\ \text{cash in hand} & 2,000 & \\ \text{Profit and loss account} & & 34,000 \\ \text{Accrued rent} & & 500 \\ \text{Sundry creditors} & & 9500 \\ Capital & \overline{129,000} & \overline{129,000}\end{array}\)
What is the value of current assets?
Answer
(A)
N37,000
40
Use the following information to answer the given question
\(\begin{array}{c|c} & DR & CR \\ & N & N \\ \hline \text{Goodwill} & 10,000 & \\ \text{Plant and Machinery} & 32,000& \\ \text{Freehold premises} & 50,000& \\ stock & 15,000& \\ debtors & 12,500 & \\ \text{Cash in bank} & 7,500 & \\ \text{cash in hand} & 2,000 & \\ \text{Profit and loss account} & & 34,000 \\ \text{Accrued rent} & & 500 \\ \text{Sundry creditors} & & 9500 \\ Capital & \overline{129,000} & \overline{129,000}\end{array}\)
The capital is
Answer
(C)
N85,000
41
Use the following information to answer the given question
\(\begin{array}{c|c} & DR & CR \\ & N & N \\ \hline \text{Goodwill} & 10,000 & \\ \text{Plant and Machinery} & 32,000& \\ \text{Freehold premises} & 50,000& \\ stock & 15,000& \\ debtors & 12,500 & \\ \text{Cash in bank} & 7,500 & \\ \text{cash in hand} & 2,000 & \\ \text{Profit and loss account} & & 34,000 \\ \text{Accrued rent} & & 500 \\ \text{Sundry creditors} & & 9500 \\ Capital & \overline{129,000} & \overline{129,000}\end{array}\)
What is the value of intangible assets?
Answer
(E)
N10,000
42
Use the following information to answer the given question
\(\begin{array}{c|c} & DR & CR \\ & N & N \\ \hline \text{Goodwill} & 10,000 & \\ \text{Plant and Machinery} & 32,000& \\ \text{Freehold premises} & 50,000& \\ stock & 15,000& \\ debtors & 12,500 & \\ \text{Cash in bank} & 7,500 & \\ \text{cash in hand} & 2,000 & \\ \text{Profit and loss account} & & 34,000 \\ \text{Accrued rent} & & 500 \\ \text{Sundry creditors} & & 9500 \\ Capital & \overline{129,000} & \overline{129,000}\end{array}\)
The value of working capital is
Answer
(A)
N27,000
43
Use the following information to answer the given question
\(\begin{array}{c|c} & DR & CR \\ & N & N \\ \hline \text{Goodwill} & 10,000 & \\ \text{Plant and Machinery} & 32,000& \\ \text{Freehold premises} & 50,000& \\ stock & 15,000& \\ debtors & 12,500 & \\ \text{Cash in bank} & 7,500 & \\ \text{cash in hand} & 2,000 & \\ \text{Profit and loss account} & & 34,000 \\ \text{Accrued rent} & & 500 \\ \text{Sundry creditors} & & 9500 \\ Capital & \overline{129,000} & \overline{129,000}\end{array}\)
Current ratio
Answer
(D)
3.7: 1
44
Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Manufacturing cost of finished goods} & 75,000 \\ \text{Mark-up is 25%} & 5,000 \end{array}\)
The gross profit for the year is
Answer
(C)
N18,750
45
Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline \text{Manufacturing cost of finished goods} & 75,000 \\ \text{Mark-up is 25%} & 5,000 \end{array}\)
The sales value for the year is
Answer
(A)
N93,750