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» Education » WAEC 2018 Financial Accounting Obj And Essay Answer – May/June Expo

WAEC 2018 Financial Accounting Obj And Essay Answer – May/June Expo

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Education
Wednesday, 18 April 2018

WAEC Financial Accounting Obj And Essay/Theory Solution Questions and Answer – MAY/JUNE 2018 Expo Runz.

Account OBJ:
1DCBDBCABCC
11BDBADBBBAA
21ADCABCBDDA
31CABBDDBCDB
41CCCBACCCAC


FOR THOSE WHO DON’T KNOW HOW TO TABULATE.
CLICK HERE FOR NO.6 WORKING – TABULER FORM


CLICK HERE FOR NO.7 WORKING – TABULER FORM


7a)
Statement Of affairs as at 1|1|06

Left Table
Capital (Opening) N30,000
Creditors N1,000
Insurance N2,000
N33,000


Right Table
Land And Building N15,000
Motor Vechicle N6,000
Stock N4,000
Cash N6,000
Debtors N2,000
N33,000

7b)
Trading Profit and loss account for the year ended 31st december 2016
Left Table
opening stock N4000
purchases N11,500
15,500
Closing Stock (2,000)
Cost of goods sold 13500
gross profit cld 17500
31,000
salaries N5000
rent and rates N4000
insurance N5000
dep on motor vechicle N2000
net profit N1500
17500


Right Table
Sales N31,000
31,000
gross profit b|d N17,500
N17,500

7c)
Balance Sheet as at 31|12|2006
Left Table
Capital N30,000
add net profit N1500
N31,500
current liability
creditor N500
insurance Owning N6000
N38,000


Table Right
Fixed Assests
Land and Building N15,000
motor vehicle N4000
19,000
current assets
stock N2000
debtors N3000
Cash N14,000
N38,000




9)
Obihan trading profit and loss account


SALES = 1,200,000
Less return inward =
15,000
= 1,185,000
Less cost of sales
Opening stock = 3000,000
Add purchase 1,050,000
Less return outward = 18,600
Net purchase=1,031,400
Cost of goods available. =1,331,400
Less closing stock=360,000
Cost of goods sold=971,400
GROSS PROFIT=213600
LESS OPERATIVE EXPENSIVE
Rates (18,000 +1,500) = 16,500
Rates ( 18,000 + 660) = 3,660
Salaries (90,000 + 15,000) = 105,000
Bad Debits = 600
Insurance = 93,000
Depreciation: Furniture 9,000
Machineries = 18,000
Provision for bad debit = 540
NET LOSS 246,300
32,700


6a)
Tabulate
Cash book Adjustment
Bal bld N48,500
interest on investment N2500
credit transfer N3000
54,000
Left Table
Bank Charges N1000
Dishonured cheques N2000
bal cld N51,000
54,000
Total Bal bld N51,000


6b)
Tabulate
Bank Reconcilation statement at 31/12/2016
balance as per adjusted cash book N N51,000
add unpresented cheques 8850
add back wrong credit 3500
12,350/63,350
less uncredited cheques (8450)
balance as per bank statement N54,900


1a)
i)It can result in a business exhausting the budget, leading to spending more than
what is coming in.
ii)Businesses may need to file for bankruptcy or shut their doors if they fail to keep adequate records from the beginning.
iii)It can result in problems with suppliers, payroll, utilities, and other vital components to a running successful business.


1b)
i)Relevance means an account information to make a difference in decision making
ii)Comparability means an account information can be used to compare different entities
iii)Consistency: information is consistently presented from year to year
iv)Reliability means an account information is verifiable, factual, and neutral
1c)
i)Accounting is only one source of information and primarily provides information based on financial terms: Although this information is vital, decisions cannot be based solely on a
monetary basis. Various decisions depend upon a diverse range of issues being considered.
ii)The historical perspective of financial accounting: In order to obtain a recent estimate of an entity’s financial performance, the corporate managers carefully scrutinize
financial accounting information. In retrospect, this information is based on past performance.


2ai)
Direct materials consist of all of the materials that become an integral part of the finished product. Direct materials should include the actual cost of the materials, as well as freight in, import duties, purchasing costs, receiving costs, storage costs and other directly attributable costs of acquiring the materials.
Example- Orange in fanta making
2aii)
Direct labor consists of all of the personnel costs required to manufacture the finished product. Direct labor should include wages, payroll taxes, and benefits associated with personnel who are integral to manufacturing the finished product.
Example- Wage of machine operator
2aiii)
Factory overhead consists of all of the other costs required to manufacture the finished product that do not fit into the direct material or direct labor elements. They consist mainly of indirect material, indirect labor, depreciation, utilities, rent, repairs and maintenance and insurance.
Example- Indirect wages.


2b)
i)RAW MATERIALS
These are the materials or goods purchased by the manufacturer. Manufacturing process is applied on the raw material to produce desired finished goods.
ii)WORK-IN-PROGRESS (WIP) These are the partly processed raw materials lying on the
production floor.
iii)FINISHED GOODS
These are the final products after manufacturing process
on raw materials. They are sold in the market.There are two kinds of manufacturing industries.


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