1994 - WAEC Accounting Past Questions & Answers - page 1

1
Which of the following statements is not valid?
A
provision for bad debts is deducted from debtors total in the Balance sheet
B
An increase in provision for bad debts appears on the debi side of the profit and loss account
C
a decrease in the provison for bad debts appears on the credit side of profit and loss accoun
D
the bas debt account is closed to the debit side of the profit and loss account
CORRECT OPTION: e
2
Carriage outwards is charged to the
A
debit side of profit and loss account
B
credit side of profit and loss account
C
credit side of trading account
D
debit side of profit and loss Appropritation account
CORRECT OPTION: a
3
Where a proprietor withdraws cash from bank for office use, the entries would be
A
credit cash account, debit bank account
B
debit cash account, credit bank account
C
debit officer account, credit bank account
D
debit drawings account, credit bank account
CORRECT OPTION: b
4
A debit cash balance of N26,900 was brought down as N24,300. The entries necessary to correct the error are
A
debit cash account N5,200, credit suspense account N5,200
B
credit cash account N5,200, debit suspense account N5,200
C
debit cash account N2,600, credit suspense account N2,600
D
credit cash account N2,600, debit suspense account N2,600
CORRECT OPTION: d
5
When a buyer is undercharged, the seller forwards
A
undercast note
B
consignment invoice
C
purchases in voice
D
debit note
CORRECT OPTION: d
6
Cash discount is given for
A
buying in large quantity
B
prompt settlement of account
C
being a regular customer
D
introducing other customers
CORRECT OPTION: b
7
Cash discount is given for
A
buying in large quantity
B
prompt settlement of account
C
being a cash reqular customer
D
introducing other customers
CORRECT OPTION: b
8
Where there is no partnership agreement, any contribution in excess of the agree capital attracts
A
no interest at all
B
interest at the rate of 2\(\frac{1}{2}\)% per annum
C
interest at the rate 5% per anuum
D
interest at all
CORRECT OPTION: c
9
Which of he following is a current asset item?
A
goodwill
B
overdraft
C
preliminary expenses
D
prepayments
CORRECT OPTION: d
10
Which of the following is a Real account item?
A
wages and salaries account
B
machinery account
C
capital account
D
drawings account
CORRECT OPTION: b
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