WAEC Accounting Past Questions & Answers - Page 300

1,496.

Carriage inwards is shown on the

Debit side of the trading account

Credit side of the trading account

Credit side of the profit and loss account

Debit side of the profit and loss account

View answer & explanation

Correct answer is A

It is posted to the debit side of trading account and added to the cost of purchase

1,497.

Use the following information to answer the given question, Aba and Baba are partners who agreed to share profits and losses in the ratio 4 : 3 respectively. Extracts from their books for the year ended 31/12/08 are:

\(\begin{array}{c|c} & \text{ABA} & \text{BABA} & \text{TOTAL}\\ & ₦ & ₦ & ₦ \\ \hline \text{Capital} & 20,000 & 15,000 & 35,000 \\ \text{Drawings} & 2,520 & - & 2,520 \\ \text{Interest on drawings} & 504 & - & 504\\ \text{Interest on capital} & 2,000 & 1,500 & 3,500 \\ \text{Net profit 31/12/08} & - & - & 34,636\end{array}\)

Aba's share of profit is

₦21,504

₦19,792

₦18,352

₦16,128

View answer & explanation

Correct answer is B

Share of profit = \(\frac{4}{4 + 3}\) = \{\frac{4}{7}\) = 0.5714

0.5714 x 34636 = 19,792

1,498.

A partners whose liability goes beyond his capital is known as

Dormal partner

Limited partner

General partner

Nominal partner

View answer & explanation

Correct answer is C

General partner is a person who joins with at least one other person to form a business. A general partner has responsibility for the actions of the business, can legally bind the business and is personally liable for all the business's debts and obligations.

1,499.

The method that provides a reliable check upon cash and stock at the branch and discloses the gross profit in the account is

Cost plus percentage

Cost price

Average cost

Selling price

View answer & explanation

Correct answer is A

No explanation has been provided for this answer.

1,500.

The realization concept states that

Revenue is recognized as being earned when ownership of goods passes to the customer

Revenue and profit should not be anticipated

Similar way from one accounting period to another

Transaction must be expressed in monetary term

View answer & explanation

Correct answer is D

The realization principle is the concept that revenue can only be recognized once the underlying goods or services associated with the revenue have been delivered or rendered, respectively. Thus, revenue can only be recognized after it has been earned. Advance payment for goods.