# 2000 - WAEC Accounting Past Questions & Answers - page 1

1
Williams and Jacob are in partnership but there is no partnership agreement. The capital contributed are N60,000 and N40,000 respectively. Profit for the year is N20,000. Interest on capital is 10%. What is Williams' share of profit?
A
N12,000
B
N10,000
C
N8,000
D
N5,000
CORRECT OPTION: d
2
Williams and Jacob are in partnership but there is no partnership agreement. The capital contributed are N60,000 and N40,000 respectively. Profit for the year is N20,000. Interest on capital is 10%. What is Jacob's share of profit?
A
N10,000
B
N8,000
C
N5,000
D
N4,000
CORRECT OPTION: c
3
Williams and Jacob are in partnership but there is no partnership agreement. The capital contributed are N60,000 and N40,000 respectively. Profit for the year is N20,000. Interest on capital is 10%. If Williams introduces cash of N10,000 by way of loan to the partnership, how much interest will he earn per annum on the loan?
A
N2,000
B
N1,500
C
N1,000
D
N500
CORRECT OPTION: d
4
Williams and Jacob are in partnership but there is no partnership agreement. The capital contributed are N60,000 and N40,000 respectively. Profit for the year is N20,000. Interest on capital is 10%. What is Williams' interest on capital?
A
N10,000
B
N7,000
C
N6,000
D
N4,000
CORRECT OPTION: c
5
In a bonus issue of one new share for every four held, a holder of 100,000 shares will get additional shares of
A
50,000
B
25,000
C
20,000
D
10,000
CORRECT OPTION: b
6
A partner who has full power of participating in the conduct of a partnership business is a
A
general partner
B
limited partner
C
sleeping partner
D
nominal partner
CORRECT OPTION: a
7
The ratio which measures the solvency of a firm is the
A
quick ratio
B
gross profit over sales ratio
C
stock turnover ratio
D
debtors turnover ratio
CORRECT OPTION: a
8
When goods are purchased on account, the accounting entries are
A
debit purchases account, credit supplier's account
B
credit purchases account, debit supplier's account
C
credit bank account, debit purchases account
D
debit bank account, debit purchases account
CORRECT OPTION: a
9
Closing stock was overstated. The effect is that
A
amount of goods available was understated
B
cost of goods sold was overstated
C
amount of sales was understated
D
gross profit was overstated
CORRECT OPTION: d
10
XYZ Enterprises bought ABC Enterprises by issuing 30,000 ordinary shares of N1 each at a discount of 5%. The assets of ABC Enterprises are stock N18,000. Debtors N11,000. The purchase consideration was
A
N31,500
B
N30,000
C
N28,500
D
N28,000
CORRECT OPTION: c
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