WAEC GCE Financial Accounting Obj And Essay/Theory Questions and Answer – NOV/DEC 2017 Expo Runz.
SECTION B – ANSWER 3 ONLY
Jallo department store
Department trading profit and loss account for the year ended 31st dec 2015
opening stock= 14000/18000
add purchase= 300000/200000
cost of goods available= 440000/380000
lost closing stock= (10000)/(20000)
cost of sales=430000/360000
repairs of building=22000/33000
wages and salaries=24000/60000
net profit=72000/504000 =60200/664000
gross profit bld=470000/576000
Sales lodger control account
Sale journal =GH$112,415
cheque dishonoured =GH$300
cash refuned =GH$150
set off =GH$500
interested charge =GH$50
bal c|d =GH$125
bal b|d =GH$6,540
Agege local government
Statement of capital expenditure for the year ended 31st
Extention of classroom =N400,000
construction of bridges =N635,000
purchase of drugs =N135,000
provision of street light =N74,500
renovation of office building =N106,500
31st Dec bal C|d =N1,351,000
SECTION A – ANSWER 2 ONLY
suspense account is an account in the general ledger in which amounts are temporarily recorded.
i)trade discount An amount or rate by which the catalog, list, or retail price of an item is reduced when sold to a reseller.
ii)cash discount is a deduction allowed
by the seller of goods or by the provider of services in order to motivate the customer to pay within a specified time.
iii)bad debtis a monetary amountowed to a creditor that is unlikely to be paid and, or which the creditor is not willing to take action to collectbecause of various reasons, often due to the debtor not having the money to pay
iv)provision for doubtful debts is the estimated amount of bad debt that will arise from accounts receivable that have been issued but not yet collected.
v)bad debt recovery is business debt from a loan, credit line or accounts receivablethat is recovered either in whole or in part after it has been written off or classified as a bad debt.