Waec Accounts - Principles of Accounts 2001 Past Questions and Answers

Question 36:

• WAEC 2001

Jeng Limited disposed a fixed asset in 1999 for N2,000. The asset was purchased in 1996 at a cost of N10,000 and has been depreciated at the rate of 20% per annum using the straight line method. What is the profit or loss on the disposal asset?

A. N4,000 profit
B. N2,000 profit
C. N2,000 loss
D. N2,000 loss

Question 37:

• WAEC 2001

"The Accountant thinks the investment in the books are worthless". This is

A. Consistency concept
B. Objectivity concept
C. Conservatism concept
D. Money measurement concept

Question 38:

• WAEC 2001

Profits are recognised when goods are sold. What concept is this

A. Realization
B. Matching
C. Periodicity
D. Going concern

Question 39:

• WAEC 2001

Ali ant Baba are in partnership sharing profits and losses if the ratio of 3 : 2 respectively. Net profit for the year was n4,000,000.00. The extract from the provisions of the partnership agreement and other information relating to 1999 are as follows:
\(\begin{array}{c|c} & \text{Ali} & \text{Baba} \\ \hline \text{Interest on capital} & \text{5%} & \text{5%} \\ \text{Partner's salary} & N500,000 & N300,000 \\ \text{Capital Account b/d} & N5,000,000 & N4,000,000 \\ \text{Current account b/d} & N400,000 & N500,000 \\ \text{Partner's Drawings} & N2,300,000 & N500,000 \end{array}\)
What is Baba's share of profit?

A. N1,650,000
B. N1,600,000
C. N1,280,000
D. N1,100,000

Question 40:

• WAEC 2001

Ali ant Baba are in partnership sharing profits and losses if the ratio of 3 : 2 respectively. Net profit for the year was n4,000,000.00. The extract from the provisions of the partnership agreement and other information relating to 1999 are as follows:
\(\begin{array}{c|c} & \text{Ali} & \text{Baba} \\ \hline \text{Interest on capital} & \text{5%} & \text{5%} \\ \text{Partner's salary} & N500,000 & N300,000 \\ \text{Capital Account b/d} & N5,000,000 & N4,000,000 \\ \text{Current account b/d} & N400,000 & N500,000 \\ \text{Partner's Drawings} & N2,300,000 & N500,000 \end{array}\)
What is Ali's share of profit?

A. N1,650,000
B. N1,600,000
C. N1,280,000
D. N1,100,000