Waec Accounts - Principles of Accounts 2020 Past Questions and Answers

Question 6:

• WAEC 2020

Use the following information to answer the question below
Provision for doubtful debts------1,000Cr
Bad debts--------500Dr
Debtors-------50,000Dr
Additional bad debts to be written off-----500

New provision for doubtful debts to stand at 5% of debtors
The net figure for debtors in the balance sheet is

A. Le 47,025
B. Le 46,550
C. Le 45,600
D. Le 45,500

Question 7:

• WAEC 2020

Income received in advance is treated in the balance sheet as a

A. Current liability
B. Current asset
C. Long-term liability
D. Fixed asset

Question 8:

• WAEC 2020

Discount allowed N2,000;
Bad debts 1,000
Cheque received from customers 24,000
Returns inwards 500;
Sales ledger balance at the beginning 2.000

The amount of sales is

A. N29,500
B. N26,000
C. N25,500
D. 24,000

Question 9:

• WAEC 2020

The excess of net assets acquired over purchase consideration is

A. Capital reserve
B. Goodwill.
C. Purchase price
D. Discount

Question 10:

• WAEC 2020

The document which contains the internal regulations of a limited liability company is the

A. Certificate of Incorporation
B. Prospectus
C. Article of Association
D. Memorandum of Association