Waec Accounts - Principles of Accounts 1995 Past Questions and Answers

Question 31:

• WAEC 1995

Which of the following is capital expenditure?

A. Purchase of stock
B. A purchase of motor vehicles for sale
C. Subscriptionspaid
D. Extension of building
E. Repairs of generator

Question 32:

• WAEC 1995

What are accounting entries for bad debts recovered?

A. Debit debtor's account, credit bad debts recovered account
B. Credit debtor's account, debit bad debts recovered account
C. Debit debtor's credit sales account
D. Credit debtor's account, debit sales account
E. Credit cash account, debit sales account

Question 33:

• WAEC 1995

\(\begin{array}{c|c} & Halima & Ibinabo \\ & N & N \\ \hline \text{Capital accounts 1st Jan, 1992} & 100,000 & 50,000 \\ \text{Current accounts 1st Jan, 1992} & 20,000 & 40,000 \\ \text{Drawing during the year} & 10,000 & 15,000 \\ \text{Annual salaries} & 14,000 & 12,000\end{array}\)
Interest on capital is 10%. The net profit for the year is N60,000. The interest on Halima's capital is

A. N10,000
B. N6,000
C. N4,0000
D. N2,000
E. N1,000

Question 34:

• WAEC 1995

\(\begin{array}{c|c} & Halima & Ibinabo \\ & N & N \\ \hline \text{Capital accounts 1st Jan, 1992} & 100,000 & 50,000 \\ \text{Current accounts 1st Jan, 1992} & 20,000 & 40,000 \\ \text{Drawing during the year} & 10,000 & 15,000 \\ \text{Annual salaries} & 14,000 & 12,000\end{array}\)
Interest on capital is 10%. The net profit for the year is N60,000. The shares of profit of each partners is

A. N17,000
B. N15,000
C. N10,750
D. N10,000
E. N9,500

Question 35:

• WAEC 1995

\(\begin{array}{c|c} & Halima & Ibinabo \\ & N & N \\ \hline \text{Capital accounts 1st Jan, 1992} & 100,000 & 50,000 \\ \text{Current accounts 1st Jan, 1992} & 20,000 & 40,000 \\ \text{Drawing during the year} & 10,000 & 15,000 \\ \text{Annual salaries} & 14,000 & 12,000\end{array}\)
Interest on capital is 10%. The net profit for the year is N60,000. The balance on Halima's current account on 31st December, 1992 is

A. N66,500
B. N53,300
C. N51,500
D. N43,500
E. N33,500