Waec Accounts - Principles of Accounts 1997 Past Questions and Answers

Question 36:

• WAEC 1997

Which of the following is a factory overhead?

A. Carriage on raw materials
B. Purchase of raw materials
C. Production wages
D. Direct expenses
E. Depreciation of factory equipment

Question 37:

• WAEC 1997

Use the following information to answer this question
A business whose assets consisted of stock N15,000 and debtors N8,000 was bought by issuing 20,000 ordinary shares of N1 each at a premium of 20 percent.
The purchase consideration was

A. N24,000
B. N23,000
C. N20,000
D. N15,000
E. N8,000

Question 38:

• WAEC 1997

Use the following information to answer this question
A business whose assets consisted of stock N15,000 and debtors N8,000 was bought by issuing 20,000 ordinary shares of N1 each at a premium of 20 percent.
The amount of goodwill was

A. N4,000
B. N3,000
C. N2,000
D. N1,6000
E. N1,000

Question 39:

• WAEC 1997

When a share is sold for less than its nominal value, the difference is called

A. Discount
B. Reserve
C. Premium
D. Loss
E. Goodwill

Question 40:

• WAEC 1997

Which of the following serves the same purpose as a Trading Account?

A. Branch Adjustment Account
B. Goods sent to Branch Accout
C. Branch Stock Account
D. Branch Debtors Account
E. Branch Returns Account