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» Education » WAEC 2019 Financial Accounting Obj And Essay Answer – May/June Expo

WAEC 2019 Financial Accounting Obj And Essay Answer – May/June Expo

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Sunday, 12 May 2019

WAEC Financial Accounting Obj And Essay/Theory Solution Questions and Answer – MAY/JUNE 2019 Expo Runz.

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Accounting OBJ:
1-10: BCABABBCCC
11-20: ACADBCBDDB
21-30: ACBCCACBAB
31-40: BDBADCCDAB
41-50: CBBBBBDCCB


(5)
CLICK HERE FOR THE IMAGE



(7)
CLICK HERE FOR THE IMAGE



(6a)
TABULATE
In the books of Ubochi and Hassanah
Profit and Loss appropriation account for the year ended 31/12/2015
DEBIT SIDE:
Int. on Capital:
U-8/100*300000=24000
H-8/100*250000=20000
Salary:
Hassanah: 10000
Share of profit:
U-3/5*247750=148650
H-2/5*247750=99100
TOTAL 301750
CREDIT SIDE:
Net profit:300000
Int. on drawing
U-5/100*2000=1000
H-5/100*15000=750
TOTAL=301750

(6b)
TABULATE
Patner's current account
DEBIT SIDE: U|H
Drawing|20000|15000
Int on Drawing|10000|750
Bal c/d|151650|113350
CREDIT SIDE: U|H
Int. on cap|24000|20000
Salary|-|10000
Share of profit:|148600|99100
CLICK HERE FOR THE IMAGE



(9) 
Stock turnover Ratio = COGS/Avg stock
= 160,000/(3,0000 + 4,0000)/2)
= 200000 x 2/10000 = 11.43 times

(9b) Gross Profit Margin = Gross Profit/Sales x 100/1
= 160,000/360,000 x 100/1 = 44.44%

(9c) Net Profit Margin = Net Profit/Sales x 100/1
= 40,000/360,000 x 100/1 = 11.11%

(9d) Current Ratio = current Assets/Current Liabilities
Current Assets = 90,000/45,000 = 2:1

(9e) Acid Test Ratio = Current Assets – Stock / Current Liabilities
= 90,000 – 40,000/45,000
= 50,000/45,000 = 10:9
CLICK HERE FOR THE IMAGE



(4a)
(i)Insufficient Funds: Salaries sometimes reach late in accounts leaving insufficient funds in your account which may lead to bouncing of cheque.
(ii)Irregular Signature: Bank will not honour a cheque if the signature of the drawer on the cheque don’t match the specimen signature available with the bank.
(iii)Alterations: Alterations on cheques are not allowed. Even if you sign the alteration to verify it, the cheque will not be considered as valid and will not be honoured by the bank.

(4b)
(i)Petty cash float: these is small amount of cash kept at hand for making immediate payments for miscellaneous small expenses.
(ii)Contra entries: is an entry which is recorded to reverse or offset an entry on the other side of an account. If a debit entry is recorded in an account, it will be recorded on the credit side and vice-versa.
(iii)Imprest system: is a form of financial accounting system. The most common imprest system is the petty cash system. In other words it is a fixed amount that is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished. 

(4c)
(i)Reduction in numbers of transactions: Many expenses of small nature recorded in petty cash book, the number of transactions is reduced in the cash.
(ii)Reduction of errors: As head cashier check the accounts of previous month and gives advance for the coming month, does, errors if any are reduced.
(iii)Savings of time and labour: As the petty expenses are recorded by petty cashier at any time so that the chances of misuse are minimised.



(2a)
Closing entries: are entries made at the end of an accounting period to zero out all temporary accounts and transfer their balances to permanent accounts. In other words, the temporary accounts are closed or reset at the end of the year.

(2b)
(i)branch is a subdivision of a company and is a geographical classification. While a department is a classification based on the function, activites or goods. 
(ii) the branch is an extension of the office with more or less the same features. While a department is a technical area of a office which is under the same premises

(2c)
(i)Depreciation of Fixed Assets: To ensure that the opening bal­ance of the fixed assets and closing balance of the fixed assets (of course deducting depreciation) are shown in the Branch Account.
(ii)Goods in Transit: To ensure that the difference between goods sent by Head Office and received by the Branch. Such goods will be shown either on both sides of the Branch Account or will be ignored altogether while preparing the Branch Account.
(iii)Expenses Incurred by Branch: To ensure that the the amount remitted by Head Office to Branch for meeting expenses is debited in Branch Account. If actual amount spent by Branch is less, the cash balance is shown as a part of closing balance, in the credit side of the Branch Account.
(iv)Loss of Stock, Surplus of Stock: To ensure that the Shortage or surpluses of stock at the Branch due to normal or abnormal reasons are not shown in the Branch Account.
=========================
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