WAEC Accounting Past Questions & Answers - Page 311

1,551.

Use the following information to answer the given question

\(\begin{array}{c|c} \text{1/1/06 Debtors} & D2,600\\ \text{1/1/06 Provision for bad debts} & D60\\ \text{31/12/06 New provision provision for bad debts} & \text{5% on debtors}\end{array}\)

What is the amount of the new provision for bad debts?

D130

D127

D124

D120

View answer & explanation

Correct answer is A

5% x 2600

\(\frac{5}{100}\) x 2600 = 130

1,552.

Which of the following is found in the general ledger?

Capital account

Sales accounts

Loan account

Drawings account

View answer & explanation

Correct answer is B

A sales account in the general ledger has a cumulative value or information regarding the actual sales ledger. By looking at this ledger, detailed information regarding the revenues can be obtained. It contains important information like date of sale, invoice number, name of the customer, amount of sale to name a few.

1,553.

Which of the following is a subsidiary book?

Cash book

Bank statement

Control accounts

Trial balance

View answer & explanation

Correct answer is A

No explanation has been provided for this answer.

1,554.

Okoro and Osula are in partnership sharing profits and losses in the ratio 3 : 2 respectively. Their respective capital were ₦7,000 and ₦5,000. Interest on capital was 5% and interest on drawings was 10%. The net profit was ₦30,000.Using the following information, The total interest on capital is

₦4,000