WAEC Accounting Past Questions & Answers - Page 126

626.

When goods are sold for cash the credit entry goes to the

A.

Trader's account

B.

Cash book

C.

Purchases account

D.

Sales account

E.

Customer’s account

Correct answer is D

No explanation has been provided for this answer.

627.

T. Trader sets aside from his private funds n1,500 for business purposes. The N1.500 would be referred to as

A.

Capital

B.

Loan

C.

Reserve

D.

Drawings

E.

Profit

Correct answer is A

No explanation has been provided for this answer.

628.

The bank column in the cash book shows a credit balance of N180. This means

A.

A total payment of N180

B.

A gross receipt of N180

C.

A left over of N180 in the bank

D.

An overdraft of N180

E.

A left over of N180 cash

Correct answer is D

No explanation has been provided for this answer.

629.

Motor car costing N10,000 was depreciated at 20 per cent anuum by the diminishing balance method. Two years late, it was sold for N6,000. The net result of the sale was

A.

N6,400 profit

B.

N6,000 loss

C.

N4,000 loss

D.

N400 profit

E.

N400 loss

Correct answer is E

No explanation has been provided for this answer.

630.

The straight-line depreciation is

A.

A fixed sum set aside for the replacement of the asset

B.

A fixed percentage of the balance of the asset at the end of the year

C.

An estimated amount each year

D.

An increase in the value of the asset

E.

A fixed percentage of the cost of the asset written off each year

Correct answer is E

No explanation has been provided for this answer.