Waec Accounts - Principles of Accounts 1998 Past Questions and Answers

Question 36:

• WAEC 1998

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

A. Share premium account
B. Share discount account
C. Profit and loss account
D. Capital reserve account
E. General reserve account

Question 37:

• WAEC 1998

The accounting year of Fehintola Ltd. ends on 31st December every year. Pant and Machinery purchased on 1st January, Year 1 N600,000
Depreciation rate per anuum, 10%
Scrap value, N60,000.
Using reducing balance method, what is the depreciation for Yr. 2?

A. N160,000
B. N114,000
C. N60,000
D. N54,000
E. N48,000

Question 38:

• WAEC 1998

The accounting year of Fehintola Ltd. ends on 31st December every year. Pant and Machinery purchased on 1st January, Year 1 N600,000
Depreciation rate per anuum, 10%
Scrap value, N60,000.
Using reducing balance method, what is the net book value on 31st December of Yr. 2?

A. N551,400
B. N546,00
C. N540,000
D. N486,000
E. N440,000

Question 39:

• WAEC 1998

The accounting year of Fehintola Ltd. ends on 31st December every year. Pant and Machinery purchased on 1st January, Year 1 N600,000
Depreciation rate per anuum, 10%
Scrap value, N60,000. Using the straight line method, what is the cumulative depreciation at the end of yr.3?

A. N216,000
B. N206340
C. N180,000
D. N162,600
E. N162,000

Question 40:

• WAEC 1998

The accounting year of Fehintola Ltd. ends on 31st December every year. Pant and Machinery purchased on 1st January, Year 1 N600,000
Depreciation rate per anuum, 10%
Scrap value, N60,000. Using the straight line method, what is he net book value at the beginning of the year 3?

A. N540,000
B. N492,00
C. N438,000
D. N437,400