Waec Accounts - Principles of Accounts Past Questions and Answers

Question 1266:

• WAEC 2015

Use the following information to answer the question belowMr White acquired Mr Black's business for GH¢ 410,000. The total assets were GH¢ 670,000 and liabilities amounted to GH¢ 320,000.
How much was paid for goodwill?

A. GH¢ 350,000
B. GH¢ 260,000
C. GH¢ 90,000
D. GH¢ 60,000

Question 1267:

• WAEC 2015

Use the following information to answer the question belowMr White acquired Mr Black's business for GH¢ 410,000. The total assets were GH¢ 670,000 and liabilities amounted to GH¢ 320,000.
The double entry to record the good will in the books is debit

A. Cash account and credit goodwill account
B. Goodwill account and credit purchase of business account
C. Goodwill account and credit cash account
D. Purchase of business account and credit cash account

Question 1268:

• WAEC 2015

The document which sets out the internal arrangement for the proper management of a company is the

A. Prospectus
B. Article of association
C. Memorandum of association
D. Certificate of incorporation

Question 1269:

• WAEC 2015

A person who has applied to purchase shares in a company is referred to as ?

A. A promoter
B. A subscriber
C. An allottee
D. An underwriter

Question 1270:

• WAEC 2015

Which of the following expenses is allocated according to the floor area?

A. Wages and Salaries
B. Rent and Rates
C. Canteen Expenses
D. Discount allowed