WAEC Accounting Past Questions & Answers - Page 346

1,726.

Accumulated fund is also referred to as

A.

Surplus

B.

Profit

C.

Deficit

D.

Capital

Correct answer is D

No explanation has been provided for this answer.

1,728.

The accounting treatment for a dishonored cheque is; debit

A.

Customer's account; credit bank account

B.

Bank account; credit customer's account

C.

Customer's account; credit sales account

D.

Sales account; credit customer account

Correct answer is B

Treatment: Before any notice of cheque being dishonored: When a supplier (payee) receives a cheque from a customer(drawer) the supplier's cash book is debited and the customer's account in the sales ledger is credited with the amount of the cheque.

1,729.

The method of ascertaining capital from income record is by preparing the

A.

Cash book

B.

Statement of affairs

C.

Suspense account

D.

Control account

Correct answer is B

No explanation has been provided for this answer.

1,730.

Which of the following subsidiary books involves cash movements?

A.

Sales day book

B.

Purchases day book

C.

Returns inwards book

D.

Petty cash book

Correct answer is D

A petty cash is a cash book used to enter all small or petty expenses obtained. For example tea, Xerox copy etc. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and postage.