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2003 - WAEC Accounting Past Questions and Answers - page 2

11

Use the following information to answer the given question.
(\begin{array}{c|c} \text{Net profit for the year} & N75.000\ \text{Ordinary share capital of 50 kobo each} & N65,000\ \text{10% Preference shares of 50 kobo each} & N100,000\end{array})
Preference dividend for the year is

A
N20,000
B
N10,500
C
N10,000
D
N7,500
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12

Use the following information to answer the given question.
(\begin{array}{c|c} \text{Net profit for the year} & N75.000\ \text{Ordinary share capital of 50 kobo each} & N65,000\ \text{10% Preference shares of 50 kobo each} & N100,000\end{array})
Dividend per ordinary share is

A
N1.00
B
N0.50
C
N0.45
D
N0.40
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13

Which of the following is the basis for apportioning rent among departments?

A
sales
B
floor area
C
number of employees
D
direct labour cost
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14

Which of the following brings a company into legal existence?

A
certificate of incorporation
B
memorandum of association
C
articles of association
D
company law
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15

Which of the following documents set out the internal regulations of a partnership?

A
law
B
deed
C
regulation
D
code
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16

(\begin{array}{c|c} & & ₦ \ \hline \text{capital accounts:} & Ojo & 40,000 \ & Aina & 20,000 \ \text{Drawings:} & Ojo & 10,000 \ & Aina & 6,000 \ \text{Interest on capital} & -5\text{%} & \ \text{interest on drawings} & -10\text{%} & \ \text{Net profit for the year} & N30,00 & \ \text{Net profit for the year - Ojo} - \frac{2}{3} & & Aina - \frac{1}{3} \end{array})
The divisible profit for the year

A
₦31,600
B
₦31,400
C
₦904,000
D
₦28,600
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17

(\begin{array}{c|c} & & ₦ \ \hline \text{capital accounts:} & Ojo & 40,000 \ & Aina & 20,000 \ \text{Drawings:} & Ojo & 10,000 \ & Aina & 6,000 \ \text{Interest on capital} & -5\text{%} & \ \text{interest on drawings} & -10\text{%} & \ \text{Net profit for the year} & N30,00 & \ \text{Net profit for the year - Ojo} - \frac{2}{3} & & Aina - \frac{1}{3} \end{array})
Ojo's share of profit for the year is

A
₦21,067
B
₦20,9333
C
₦20,000
D
₦19,067
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18

(\begin{array}{c|c} & & ₦ \ \hline \text{capital accounts:} & Ojo & 40,000 \ & Aina & 20,000 \ \text{Drawings:} & Ojo & 10,000 \ & Aina & 6,000 \ \text{Interest on capital} & -5\text{%} & \ \text{interest on drawings} & -10\text{%} & \ \text{Net profit for the year} & N30,00 & \ \text{Net profit for the year - Ojo} - \frac{2}{3} & & Aina - \frac{1}{3} \end{array})
Aina's current account balance is

A
₦9,933
B
₦9,533
C
₦6,600
D
₦3,933
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19

The accounting concept that supports the application of double entry book-keeping is the

A
going concern concept
B
dual aspect concept
C
historical cost concept
D
consistency concept
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20

Which of the following is a limitation of the money measurement concept?

A
efficient management is not disclosed
B
there is no basis for comparison
C
inter-period comparison is impossible
D
it does not allow choice of methods
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