Waec Accounts - Principles of Accounts 2014 Past Questions and Answers

Question 26:

• WAEC 2014

The concept that states that a business should not lay claim to any profits before it is earned with reasonable certainty is

A. Constitency concept
B. Prudence concept
C. Accrual concept
D. Going corncern cocept

Question 27:

• WAEC 2014

When shares are issued above their nominal value, the excess above the nominal value is

A. Credited to profit and loss account
B. Debited to share premium account
C. Credited to share capital account
D. Credited to share premium account

Question 28:

• WAEC 2014

Shares issued below nominal value are referred to as shares at

A. Premium
B. Discount
C. Face value
D. Cumulative value

Question 29:

• WAEC 2014

Use the following information to answer the question given.
\(\begin{array}{c|c} Capital & Le \\ \hline Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \text{Interest on capital-6%} & \\ \text{Interest on drawings - 10%} & \end{array}\)
Profit sharing is in the ratio of capital. The divisible profit is

A. Le 14,000
B. Le 12,000
C. Le 10,000
D. Le 8,000

Question 30:

• WAEC 2014

Use the following information to answer the question given.
\(\begin{array}{c|c} Capital & Le\\ \hline Aye & 20,000\\ Bee & 30,000\\ Drawings & \\ Aye & 8,000 \\ Bee & 2,000 \\ \text{Profit for the year} & 2,000\\ \text{Interest on capital-6%} & \\ \text{Interest on drawings - 10%} & \end{array}\).
Profit sharing is in the ratio of capital. Aye;s share of profit is

A. Le 6,000
B. Le 4,800
C. Le 4000
D. Le 3,200