WAEC Book Keeping Essay/Theory and OBJ Questions and Answer – May/June 2017 Verified Expo Runs
BOOK KEEPING OBJ:
1D 2D 3B 4D 5D 6B 7B 8A 9A 10A
11D 12D 13A 14C 15C 16D 17A 18* 19D 20C
21A 22B 23C 24C 25C 26A 27B 28C 29A 30D
31B 32D 33A 34C 35B 36D 37A 38B 39A 40C
SECTION A: ANSWER ONLY 2 QUESTION FROM THIS SECTION
1a) payment voucher: A document which can be used as proof that a monetary transaction has occurred between two parties. In business, a payment voucher can be used for a variety of purposes, sometimes taking the place of cash in a transaction, acting as a receipt, or indicating that an invoice has been approved for payment.
i)Purchase Book or Purchase Journal: Purchase book is a book of original entry in which only credit purchases of goods are recorded.
ii)Sales Book or Sales Journal: Sales book is a book of original entry in which only credit sales of goods are recorded.
iii)Purchases Return Book or Purchases Return Journal: Purchases return book is a book of original entry in which transactions related to the return of purchases of goods are recorded.
iv)Sales Return Book Or Sales Return Journal: Sales return book is a book of original entry in which transactions related to the return of sales of goods are recorded
2a)Commerical account usually refers to a checking or other type of demand deposit account.
2c)Advantages of Control Accounts:
i) Control accounts provide a summary of transactions recorded in various subsidiary ledger. Hence these are very useful to management in policy formulation.
ii) It makes possible the division of accounting work among ledger keepers, thereby resulting in specialisation in work.
iii) It facilitates prompt preparation of profit and loss account and balance sheet at the end of each period by providing stock figures quickly.
3a)Trial balance is defined as a statement of all debits and credits in a double-entry account book, with any disagreement indicating an error.
3bi)Ommision of Errors :A mistake that consists of not doing something you should have done, or not including something such as an amount or fact that should be included: Errors of omission are likely to be more common than errors of commission.
3bii)Principle of Error: An accounting mistake in which an entry is recorded in the incorrect account, violating the fundamental principles of accounting. An error of principle is a procedural error , meaning that the value recorded was the correct value but placed incorrectly.
3biii)Error of Commission: This occurs where proper double entry is observed except an entry is made to the wrong personal account.
3biv) Original entry of errors: An error of original entry occurs when an incorrect amount is posted to the correct accounts. A particular example of an error of original entry is a transposition error where the numbers are not entered in the correct order.
trading profit and loss account for the year
3rd march 2015
opening stock 34800
add purchases 160500
add carriage involvs 2600/163100/4400
less returns 158700
Less closing stock 29600
cross profit 81000/244900
carriage outwards 9300
bad debts 1600
salaries&wages (29800-5800) 24000
electricity (8700+4000) 12700
gen. Office expenses 5900
discount allowed 3600
dep land&building 12500
dep equipment 10000
net profit 9900/89500
less return 5500
net sales 244900/244900
gross profit b/d 81000
decrease indeabfut/debt 1300
discount received 7200
balance sheet as at 31st march 2015
add profit 9900/359900
less drawings 7200/352700
electricity owning 4000
land/building 350000, 37500, 212500
equipment 100,000, 29000, 71000
less pro 1500, 50500
cash & bank 14300
salaries propaid 5800
Total debtors’ control account.
TABULATE DR. & CR.
Under Debit side ie Left handside:
Debit bal N43,900
Sales day book N349,500
Cash paid to customers N600
Interest to customers N500
Customers credit bal N120
Bal b/d N66,900
UNDER CREDIT SIDE ie left handside.
Credit bal N100
Sales return N3,580
Contra entries N800
Cash frm customers N320,760
Bad debts N1,230
Discount allowed N1,250
Bal c/d N66,900
Total creditors control account
PLS TABULATE DR. & CR.
UNDER DEBIT SIDE ie left handside:
Debit bal N23,140
Purchase return N3,200
Contra entry N800
Cash refund to suppliers N126,500
Discount received N260
Bal c/d N3,020
UNDER CREDIT SIDE ie right handside:
Credit bal N200
Purchase day book N148,680
Cash refund frm suppliers N1,500
Interest by suppliers N200
Suppliers debit bal N300
Bal b/d N3,020
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