WAEC Accounting Past Questions & Answers - Page 28

136.

A debit balance of N420 on the purchase ledger control account means that as at that date............

A.

Trade creditors have been paid by N420

B.

Trade creditors are owed N420

C.

Goods returned to trade creditors amounted to N420

D.

Total supplies from trade creditors amounted to N420

Correct answer is A

The purchase ledger control account is part of the balance sheet and shows at any given time how much you owe to your suppliers. It is credited if its balance increases & debited if its balance decreases.

 

137.

The current assets less current liabilities is

A.

Working capital

B.

Capital employed

C.

Fluctuating capital

D.

Fixed capital

Correct answer is A

The working capital in simple terms is the money used in the day-to-day running of the business.

It is the difference between a company's current assets—such as cash, accounts receivable, inventories of raw materials, and finished goods—and its current liabilities, such as accounts payable and debts.

 

138.

An amount of Le2000 received from a customer, Koffi has been credited to another customer, Kofigo's account. This is an error of?

A.

Principle

B.

Commission

C.

Original entry

D.

Complete reversal

Correct answer is B

Error of commission is an error that occurs when doing something wrong, such as including a wrong amount or including an amount in the wrong place.

For example, money that has been received from a customer is credited properly to the accounts receivable account, but to the wrong customer.

 

140.

Tei Ltd offered 1,560 units of magazines at N60 each. Trade discount is 10%  and cash discount is 10% within 30 days and 5% within 60 days.

The cash discount allowed on the 50th day is?

A.

9,360

B.

8,424

C.

4,680

D.

4,212

Correct answer is C

Unit cost = 60
Quantity = 1560
60 x 1560 = 93600

Cash discount = 5/100 x 93600 = 4680