Waec Accounts - Principles of Accounts 2009 Past Questions and Answers

Question 26:

• WAEC 2009

The authorized capital of city entertainment company is made up of 200,000 2\(\frac{1}{2}\)% preference shares of Le 60 each and 300,000 ordinary shares have been issued at Le 30 each and fully paid. All the preference dividend and recommended ordinary divided Le 0.10 per share. Using the following information, What is the amount of the share premium?

A. Le 9,000,000
B. Le 500,000
C. Le 3,000,000
D. Le 2,400,000

Question 27:

• WAEC 2009

The authorized capital of city entertainment company is made up of 200,000 2\(\frac{1}{2}\)% preference shares of Le 60 each and 300,000 ordinary shares have been issued at Le 30 each and fully paid. All the preference dividend and recommended ordinary divided Le 0.10 per share. Using the following information, the value of the ordinary share capital to be stated in the balance sheet is

A. Le 9,000,000
B. Le 7,200,000
C. Le 4,800,000
D. Le 4,000,000

Question 28:

• WAEC 2009

The petty cash book has

A. A debit balance only
B. A credit balance only
C. A nill balance only
D. Both debit and credit balances

Question 29:

• WAEC 2009

Credit sales was debited to A. Akpan instead of B. Akpan. This is an error of

A. Principle
B. Original entry
C. Omission
D. Comission

Question 30:

• WAEC 2009

A motor car costing D100,000 was depreciated at 20% per annum by the diminishing balance method. Two years later, it was sold for D60,000. Using the information, the net profit or loss on the sale was

A. D 40,000 profit
B. D 4,000 profit
C. D 4,000 loss
D. D 40,000 loss