WAEC Accounting Past Questions & Answers - Page 104

517.

Cash paid to jake, N2,500 was entered on the credit side of his account and debited to cash account. This is an error of

A.

Principle

B.

Commision

C.

Complete reversal of entries

D.

Original entry

Correct answer is C

Error of Complete Reversal Entry – As the name implies, this means that the debit and credit entry recorded for a particular transaction are reversed. The transactions are incorrect but because the amount is the same or equal at both sides, the trial balance still balanced.

518.

A petty cash account has an imprest of GH¢ 6,000. If GH¢ 2,000 were left, how much will be re-imbursed at the end of the period?

A.

GH¢ 8,000

B.

GH¢ 6,000

C.

GH¢ 4,000

D.

GH¢ 2,000

Correct answer is C

An imprest is a fund used by a business for small items of expenditure and restored to a fixed amount periodically.

reimbursement is a repayment for money you've already spent.

  • The petty cashier imprest is a fixed amount of GH¢6,000
  • At the end of the month GH¢2,000 left
  • The imprest will be reimbursted with GH¢4,000


 

519.

A bank statement shows an overdraft of GH¢ 190,000. Kofi a debtor paid GH¢ 400,000 into the account. The new balance is

A.

GH¢ 590,000

B.

GH¢ 590,000 0verdrawn

C.

GH¢ 210,000

D.

GH¢ 210,000 Overdrawn

Correct answer is C

An overdraft is a deficit in a bank account caused by drawing more money than the account holds.

The bank will deduct the deficit balance from the new deposit as thus; GH¢ 400,000 - GH¢ 190,000 = GH¢ 210,000

 

520.

Which of the following errors are errors of commission?
I. A cheque paid to Adam debited to Adam's account.
II. Credit sales to Eva credited to sales account but debited to Eve's account.
III. Furniture repairs debited to furniture account.
IV. Credit purchases from Manu credited to Manu's account

A.

I and II

B.

I and IV

C.

II and IV

D.

III and IV

Correct answer is A

Error of commission; mistake that consists of doing something wrong, such as including a wrong amount, or including an amount in the wrong place. Example; If we debit or credit an account, other than the correct account, but with the correct amount, the total debits and credits in the ledger will remain equal and hence the trial balance will not disclose the error.