Waec Accounts - Principles of Accounts 2001 Past Questions and Answers

Question 41:

• 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 the closing balance in Ali's Current Account?

A. N1,600,000 Cr.
B. N500,000 Cr.
C. N500,000 Dr
D. N1,600,000Dr

Question 42:

• WAEC 2001

An agreement made by partners to regulate and govern their business activities is known as

A. Partnership Act
B. Partnership Deed
C. Partnership code
D. Memorandum

Question 43:

• WAEC 2001

Issue of prospectus is an invitation to members of the public to

A. Subscribe for shares
B. Register a company
C. Redeem shares
D. Liquidate a company

Question 44:

• WAEC 2001

Which of the following are correct about a limited liability company? i. Members have power to bind the company ii. Perpetual succession iii. Certificate of incorporation iv. Wound-up on death of a share holder

A. Ii and iii only
B. I and iv only
C. Ii and iv ony
D. I and iii only

Question 45:

• WAEC 2001

Use the following information to answer the given question
\(\begin{array}{c|c} & N \\ \hline Sales & 200,000 \\ \text{Opening Stock} & 20,000 \\ purchases & 140,000 \\ \text{Closing Stock} & 10,000 \\ Expenses & 10,000\\ Bank & 10,000 \\ Capital & 85,000 \\ Creditors & 35,000 \\ Debtors & 50,000 \\ \text{Fixtures and fittings, cost} & 10,000 \\ \text{Freehold land and building} & 70,000 \\ Drawings & 10,000\end{array}\)
Percentage of net profit to sales is

A. 40%
B. 30%
C. 20%
D. 10%