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1994 - WAEC Accounting Past Questions and Answers - page 2

11

A plant which costs N1,000 and has a residual value of N125 is depreciated at 20% per annum. Using the diminishing balance method, what is the amount of depreciation for the second year?

A
N128
B
N140
C
N160
D
N175
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12

Which of the following serves the same purpose as the income and expenditure account of a non-trading organization?

A
trading account
B
profit and loss account
C
balance sheet
D
income distribution account
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13

A plant which costs N1,000 and has a residual value of N125 is depreciated at 20% per annum. Using the straight-line method, what is the depreciation charge for the second year?

A
N128
B
N140
C
N160
D
N175
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14

A plant which costs N1,000 and has a residual value of N125 is depreciated at 20% per annum. Using the diminishing balance, what is the net book value at the second year?

A
N512
B
N525
C
N640
D
N700
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15

Which of the following is treated under partnership appropriation account?

A
interest on loan
B
salary of workers
C
electricity
D
salary of partner
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16

Debtors at start was N5,620 and at close N3,460. Cash and cheques received from customers amounted to N16,330. Credit sales for the year valued

A
N3,460
B
N5,620
C
N14,170
D
N16,330
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17

The excess of current assets over current liabilities is

A
fixed capital
B
registered capital
C
nominal capital
D
paid-up capital
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18

Rate of stock turnover is defined as

A
purchases over stock
B
cost of goods available for sale over total of opening and closing stock
C
cost of goods available for sale ovet total of opening and closing stock
D
cost of goods sold over total opening and closing stock
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19

Which of the following is not true of a partnership business without written agreement?

A
profit and losses will shared equally
B
interest not to be paid on capital
C
interest on drawings is to be at the rate 5% per annum
D
salaries are not allowed to partners
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20

Creditors at start was N940 and purchases for the year was N4,060. During the year, cash paid to creditors was N3,890. N490 was received as discount. What is the creditors amount in the balance sheet?

A
N450
B
N620
C
N660
D
N1,110
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