Waec Accounts - Principles of Accounts 2017 Past Questions and Answers

Question 56:

• WAEC 2017

(a) What is a Bank Reconciliation Statement?
(b) State three reasons for preparing a bank reconciliation statement
(c) Explain the following terms:
i. unpresented cheques
ii. standing order
iii.credit transfer

Question 57:

• WAEC 2017

(a) Explain the following terms used in not-for-profit making organizations.
i. Accumulated fund
ii. Subscription in arrears
iii. Receipts and Payment Accounts
iv. Income and Expenditure Accounts
v. Entrance fees
(b) Distinguish between shares and debentures

Question 58:

• WAEC 2017

(a) List the four main groups of accounting ratios
(b) Identify accounting ratio which relates to each of the following statements
i. a return of N10 net profit for every N100 invested
ii. goods are held on average for a period of one month before they are sold
iii. trade debtors on the average take a period of 33 days to settle their debts.
iv. trade creditors on the average are paid within 44 days for credit purchases
v. gross profit of N40 is made on every N100 of net sales
vi. current assets are three times that of current liabilities
vii. liquid assets are three times that of current liabilities.
viii. for every N100 net turnover, N17 is made after deducting operational expenses.
ix. profit covers interest payment9 times

Question 59:

• WAEC 2017

The trial balance of Deba Duwa Enterprise failed to agree. The difference was entered in the suspense account. The following errors were later detected:
i. A sum of $1000 received from Salako has been posted to his account;
ii. The sales day books was undercast by $560
iii. Return outwards books was overcast by $140
iv. Discount received, $410 from Damilola had been correctly entered in the cash book but not posted to Damilola's account
v. Goods worth $750 returned to a supplier was recorded in his personal account as $750
vi. Discount allowed was overcast by $310
vii Discount received column in the cash book has been overcast by $400.
You are required to prepare:
(a) Journal entries to correct the errors
(b) Suspense Account.

Question 60:

• WAEC 2017

Idayah Limited is a manufacturing company. The following balances were extracted from its records on 31st December 2014.
Stock on 01/01/2014 Le
Raw materials-------------------56,000
Work-in-progress---------------60,000
Finished goods-----------------80,000
Purchases of raw materials-150,000
Carriage of raw materials------7500
Manufacturing wages paid---16,500
Factory wages accrued--------4,000
Direct factory expenses------11,000
Fuel for factory expenses---15,400
Depreciation of factory equipment---12,000
Sales of finished goods------500,000
Carriage expenses-------------7,600
General office goods----------3,800
Office Salaries------------------19,200
Stock: 31/12/2014
Raw materials-----------------40,000
Work-in-progress -------------64,000
Finished goods----------------72,000
You are required to prepare manufacturing, Trading, and Profit and Account for the year ended 31st December 2014