WAEC - Accounts Principles Of Accounts (2022)

1

Use of following information to answer questions below

	D
Motor vehicle	500000
Stock	35000
Debtors	18000
Cash	12850
Bank overdraft	280000
Creditors	21500

The capital is

Answer

(C)

D 264,350

2

Use of following information to answer questions below

	D
Motor vehicle	500000
Stock	35000
Debtors	18000
Cash	12850
Bank overdraft	280000
Creditors	21500

The total current asset is

Answer

(A)

D 65,850

3

Use of following information to answer questions below

	D
Motor vehicle	500000
Stock	35000
Debtors	18000
Cash	12850
Bank overdraft	280000
Creditors	21500

The total current liability is

Answer

(A)

D 301,500

4

One of the items on the credit column of a trial balance is

Answer

(A)

returns outwards

5

The user of accounting information who is responsible for overall performance of the business is the

Answer

(D)

director

6

Use the following information to answer questions below

A trader bought goods worth #16,000 and sold three-quarter of it for #20,000

The gross profit is

Answer

(A)

#4,000

7

Use the following information to answer questions below

A trader bought goods worth #16,000 and sold three-quarter of it for #20,000

The margin would be

Answer

(B)

1/5

8

A unit of a company capital is?

Answer

(D)

share

9

An increase in provision for doubtful debts would result in

Answer

(A)

decrease in net profit

10

Resources owned and controlled by a business are classified as

Answer

(A)

assets

11

Use the following information to answer questions below

Bola a grocer, keep petty cash on imprest system, the float being GH⊄ 8,000. These transactions took place in January 2018.

		GH⊄
January 1	Petty cash in hand	1034
January 1	Petty cash to restore float	6966
January 6	Bought note books	656
January 7	Paid wages	1828
January 14	Bought postage stamps	750
January 16	Paid to Biodun a creditor	1072
January 18	Paid wages	1856
January 23	Purchased envelopes	874
January 28	Purchased postage stamps	420

Amount posted to the personal ledger was

Answer

(B)

GH⊄ 1,072

12

Use the following information to answer questions below

Bola a grocer, keep petty cash on imprest system, the float being GH⊄ 8,000. These transactions took place in January 2018.

		GH⊄
January 1	Petty cash in hand	1034
January 1	Petty cash to restore float	6966
January 6	Bought note books	656
January 7	Paid wages	1828
January 14	Bought postage stamps	750
January 16	Paid to Biodun a creditor	1072
January 18	Paid wages	1856
January 23	Purchased envelopes	874
January 28	Purchased postage stamps	420

Amount spent on stationery was

Answer

(C)

GH⊄ 1,530

13

Use the following information to answer questions below

Bola a grocer, keep petty cash on imprest system, the float being GH⊄ 8,000. These transactions took place in January 2018.

		GH⊄
January 1	Petty cash in hand	1034
January 1	Petty cash to restore float	6966
January 6	Bought note books	656
January 7	Paid wages	1828
January 14	Bought postage stamps	750
January 16	Paid to Biodun a creditor	1072
January 18	Paid wages	1856
January 23	Purchased envelopes	874
January 28	Purchased postage stamps	420

Amount reimbursed at the end of the month was

Answer

(C)

GH⊄ 7,456

14

An item that would be classified as preliminary expenses in a company's account is

Answer

(A)

formation expenses

15

Use the information to answer questions below

Years	Current Assets	Liabilities	Fixed Assets	Capital
	#	#	#	#
2018	52550	78600	127450	X
2017	41650	53220	Y	116780

The letter X represents

Answer

(C)

#101,400

16

Use the information to answer questions below

Years	Current Assets	Liabilities	Fixed Assets	Capital
	#	#	#	#
2018	52550	78600	127450	X
2017	41650	53220	Y	116780

The letter Y represents

Answer

(B)

#128,350

17

Revenue expenditure of a local government includes purchase of

Answer

(C)

drugs

18

The sales ledger contains accounts of

Answer

(B)

trade debtors

19

Use the following information to answer questions below

	$
Cash book balance (credit)	750
Uncredited cheques	500
Unpresented cheques	1680
Direct credit	300
Bank charges	150

The adjusted cash book balance is

Answer

(B)

$ 300 Cr

20

Use the following information to answer questions below

	$
Cash book balance (credit)	750
Uncredited cheques	500
Unpresented cheques	1680
Direct credit	300
Bank charges	150

Balance as per bank statement is

Answer

(C)

$ 430 Cr.

21

Provision for doubtful debts is made in conformity with

Answer

(C)

prudence concept

22

The accounting concept which states that expenditure involving insignificant amounts should be regarded as expenses and not assets is

Answer

(C)

materiality concept

23

Manufacturing account is prepared to ascertain

Answer

(B)

cost of goods produced

24

Adiza gave an instruction to her banker to pay a premium of Le 30,000 from her account to Union Rock Insurance on a quarterly basis for a policy. This instruction is an example of

Answer

(C)

standing order

25

Drawings made by a partner would be

Answer

(D)

debited to current account

26

The document prepared by the buyer and sent to the seller listing the items to be supplied is

Answer

(A)

purchase order

27

Use the following information to answer questions below

Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is #150,000 and the interest on capital is 5%.

Teteh's share of profit is

Answer

(C)

#75,000

28

Use the following information to answer questions below

Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is #150,000 and the interest on capital is 5%.

Kukuma's current account balance is

Answer

(B)

#70,000

29

Use the following information to answer questions below

Teteh and Kukuma are in partnership with capital balances of #300,000 and #200,000 respectively. They agreed to share profit on the basis of their capital. The profit for the year is #150,000 and the interest on capital is 5%.

Teteh's share of interest on capital is

Answer

(A)

#15,000

30

The maximum amount a company can raise through the issue of shares is

Answer

(B)

authorized capital

31

In the balance sheet of not-for-profit making organizations, subscription in arrears is shown under

Answer

(B)

current assets

32

The authority to incur expenditure to address natural disaster is contained in

Answer

(A)

contingency warrant

33

Books of accounts are opened by the use of

Answer

(C)

general journal

34

The principal book of account where accounts are classified and summarized is

Answer

(B)

ledger

35

Use the following information to answer questions below

	Le
Raw materials:
Stock (01/01/2017)	822000
Stock (31/12/2017)	560000
Purchases	125000
Returns of raw materials	15000

The cost of raw materials available for production is

Answer

(B)

Le 932,000

36

Use the following information to answer questions below

	Le
Raw materials:
Stock (01/01/2017)	822000
Stock (31/12/2017)	560000
Purchases	125000
Returns of raw materials	15000

The cost of raw materials consumed is

Answer

(D)

Le 372,000

37

An item that would be considered a first charge against profit in a company's account is

Answer

(B)

preference dividend

38

The entries for cash drawn from the bank by a proprietor for the private use is: debit

Answer

(D)

Drawings Account; credit Bank Account

39

Use the following information to answer questions below

Trading Account of Umeh Enterprises for the year ended 31st December 2019

	GH⊄		GH⊄
Opening stock	10000	Sales	200000
Purchases	120000	Less:	(4000)
	130000		196000
Closing stock	(22800)
Cost of goods sold	-----
Gross profit	------
	196000		196000

The cost of goods sold is

Answer

(B)

GH⊄ 107,200

40

Use the following information to answer questions below

Trading Account of Umeh Enterprises for the year ended 31st December 2019

	GH⊄		GH⊄
Opening stock	10000	Sales	200000
Purchases	120000	Less:	(4000)
	130000		196000
Closing stock	(22800)
Cost of goods sold	-----
Gross profit	------
	196000		196000

The gross profit is

Answer

(A)

GH⊄ 88,800

41

Use the following information to answer questions below

Trading Account of Umeh Enterprises for the year ended 31st December 2019

	GH⊄		GH⊄
Opening stock	10000	Sales	200000
Purchases	120000	Less:	(4000)
	130000		196000
Closing stock	(22800)
Cost of goods sold	-----
Gross profit	------
	196000		196000

The GH⊄ 4,000 on the credit side is

Answer

(D)

returns inwards

42

One of the items on the debit side of sales ledger control account is

Answer

(C)

bills dishonored by debtors

43

Use the following information to answeer questions below

Kako Ltd bought a machine for D 1,200,000 on 1st January 2018. Depreciation was provided annually at a rate of 10% using the diminishing balance method. The machine was sold for D 880,000 on 31st December 2021.

The accumulated depreciation as at the date of disposal was

Answer

(B)

D 325,200

44

Use the following information to answeer questions below

Kako Ltd bought a machine for D 1,200,000 on 1st January 2018. Depreciation was provided annually at a rate of 10% using the diminishing balance method. The machine was sold for D 880,000 on 31st December 2021.

The net book value of the machine in the balance sheet as at 31st December 2020 was

Answer

(A)

D 874,800

45

Use the following information to answeer questions below

Kako Ltd bought a machine for D 1,200,000 on 1st January 2018. Depreciation was provided annually at a rate of 10% using the diminishing balance method. The machine was sold for D 880,000 on 31st December 2021.

The profit or loss on disposal of the machine was

Answer

(B)

D 87,480 loss