WAEC Accounting Past Questions & Answers - Page 347

1,731.

An example of a credit entry in a profit and loss account is

A.

Carriage inwards

B.

Carriage outwards

C.

Discounts allowed

D.

Discounts received

Correct answer is D

Discount  received  appear as a credit on  the Profit and Loss Account. Basically, the cash discount received journal entry is a credit entry because it represents a reduction in expenses.

 

1,732.

Goods returned by the buyer is recorded in the seller's book as

A.

Carriage inwards

B.

Carriage outwards

C.

Returns outwards

D.

Returns inwards

Correct answer is D

Returns inwards refer to goods returned to the selling entity by the customer/buyer due to one reason or the other. The goods would be recorded by the seller in the returns inwards account.

1,733.

In the operation of an imprest of petty cash, the

A.

Petty cashier pays all expenses

B.

Petty cashier pays money to the accountant

C.

Petty cashier regularly begins each period with the same amount of money

D.

Main cashier accounts to the petty cashier for some experiences made by him

Correct answer is C

An imprest system is a Self-checking account where a fixed balance is maintained by regular replenishments and used for paying small, routine operating expenses. Also called Imprest account, Imprest fund, petty cash account, or petty cash fund.

1,734.

A book that contains individual accounts of suppliers is the

A.

Purchase ledger

B.

General ledger

C.

Nominal ledger

D.

Sales ledger

Correct answer is A

A bought ledger is a system in accounting by which a business records and monitors its creditors. The purchase ledger contains the individual accounts of suppliers from whom the business has made purchases on credit.

 

1,735.

The source document used to make entries in the purchase day book is

A.

Debit note

B.

Credit note

C.

Invoice

D.

Receipt

Correct answer is C

An invoice, bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer.