WAEC Accounting Past Questions & Answers - Page 42

206.

Use the following information to answer the question below

Opening stock---------2,300
Purchases-------------11,874
Sales--------------------18,600
Closing stock-----------3,600
Cost of goods sold---11,500

The percentage of gross profit to sales is

A.

61.82%

B.

38.17%

C.

28.49%

D.

14.25%

Correct answer is B

Gross profit  = sales - cost of goods sold

= 18,600 - 11,500 = 7,100

Percentage = 7,100/18,600 x 100

= 38.17% 

 

207.

Share premium is classified in the balance sheet as

A.

Fixed capital

B.

Capital reserve

C.

Revenue reserve

D.

Short-term capital

Correct answer is B

No explanation has been provided for this answer.

208.

Working capital is the excess of

A.

Current assets over fixed assets

B.

Current liabilities over current assets

C.

Fixed assets over currents liabilities

D.

Current assests over current

Correct answer is D

No explanation has been provided for this answer.

209.

Goodwill may be brought into the books when

A.

No partner retires

B.

Assets are more than liabilities

C.

Profit for the period is high

D.

A new partner is admitted

Correct answer is D

No explanation has been provided for this answer.

210.

Interest on partners drawings are debited in the

A.

Partners current accounts and credited to the appropriation account

B.

Drawings account and credited to the profit and loss account

C.

Profit and loss account and credited to the partners current account

D.

Profit and loss account and credited to the partners' drawings account 

Correct answer is A

No explanation has been provided for this answer.