Waec Accounts - Principles of Accounts Past Questions and Answers

Question 1011:

• WAEC 2010

Use the following information to answer the given question
\(\begin{array}{c|c} \text{1/1/06 Debtors} & D2,600\\ \text{1/1/06 Provision for bad debts} & D60\\ \text{31/12/06 New provision provision for bad debts} & \text{5% on debtors}\end{array}\)
The provision for bad debts in the profit and loss account is

A. D187
B. D127
C. D67
D. D70

Question 1012:

• WAEC 2010

Sales was D12,500, total expenses was D2,500 and net profit is 10% of sales what is the gross profit?
net profit = 0.1 x 12500 = 1250
gross profit = sales - cogs
net profit = gross profit - expenses
1250 + 2500

A. D11,250
B. D8,750
C. D3,750
D. D1,250

Question 1013:

• WAEC 2010

Which of the following is the equivalent of the receipts payment accounts?

A. Income and expenditure accounts
B. Cash book
C. Subscriptions account
D. Profit and loss account

Question 1014:

• WAEC 2010

Subscriptions received in advance are

A. Included in the income and expenditure account
B. Not included in the receipts and payment account
C. Shown as a current asset in the balance sheet
D. Shown in the Balance Sheet as a current liability

Question 1015:

• WAEC 2010

Where records maintained are inadequate to facilitate the preparation of a trading and profit and loss accounts, this is described as

A. Cost accounting
B. Bookkeeping
C. Incomplete records
D. Double entry