Waec Accounts - Principles of Accounts Past Questions and Answers

Question 501:

• WAEC 2000

XYZ Enterprises bought ABC Enterprises by issuing 30,000 ordinary shares of N1 each at a discount of 5%. The assets of ABC Enterprises are stock N18,000. Debtors N11,000. The purchase consideration was

A. N31,500
B. N30,000
C. N28,500
D. N28,000

Question 502:

• WAEC 2000

XYZ Enterprises bought ABC Enterprises by issuing 30,000 ordinary shares of N1 each at a discount of 5%. The assets of ABC Enterprises are stock N18,000. Debtors N11,000. Capital reserve was

A. N1,500
B. N1,000
C. N500
D. N150

Question 503:

• WAEC 2000

The entries necessary for recording profit loading on goods sent to branch are

A. Debit branch stock account, credit branch stock adjustment account
B. Credit branch stock Adjustment account, debit goods, debit goods sent to branch account
C. Debit goods sent to branch account, credit branch stock account
D. Debit branch stock adjustment account, credit branch stock account

Question 504:

• WAEC 2000

Expenses incurred when incorporating a company are

A. Preliminary expenses
B. Selling expenses
C. Administrative expenses
D. Financial expenses

Question 505:

• WAEC 2000

Gross Profit of a business is the

A. Excess of sales over all the trading expenses
B. Difference between sales and purchases
C. Excess of sales over the cost of goods sold
D. Difference between discounts received and discount allowed