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2005 - WAEC Accounting Past Questions and Answers - page 2

11

A debit balance of N1,000 in cash account means that

A
cash in hand is N1,000
B
cash has been overspent by N1,000
C
total cash paid out is N1,000
D
total cash received was less by N1,000
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12

The maximum level of cash held by by a cashier under an imprest system is a/an

A
vote
B
float
C
reimburstment
D
advance
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13

The total of the sales journal is entered on the

A
debit side of sales account
B
debit side of cash account
C
credit side of sales account
D
credit side of cash account
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14

Gross profit is calculated in the

A
trading account
B
profit and loss account
C
appropriation account
D
partners current account
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15

An example of fixed asset is

A
creditors
B
goodwill
C
accruals
D
furniture
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16

Use the following information to answer the question
(\begin{array}{c|c} & Ade & Bola\ & N & N \ \hline \text{Capital Accounts} & 60,000 & 40,000\ \text{Current Accounts} & 10,000 Cr & 6,000 Cr \ \text{Drawings} & 8,000 & 2,000 \end{array})
Interest on drawings is 5%, interest on capital is 10%. Profit and losses are shared equally. Net profit for the year is N30,000. The amount of distributable profit is

A
N39,500
B
N30,500
C
N30,000
D
N20,500
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17

Use the following information to answer the question
Use the following information to answer the question
(\begin{array}{c|c} & Ade & Bola\ & N & N \ \hline \text{Capital Accounts} & 60,000 & 40,000\ \text{Current Accounts} & 10,000 Cr & 6,000 Cr \ \text{Drawings} & 8,000 & 2,000 \end{array})
Interest on drawings is 5%, interest on capital is 10%. Profit and losses are shared equally. Net profit for the year is N30,000. Ade's share of profit is

A
N19,750
B
N15,250
C
N15,000
D
N10,250
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18

Use the following information to answer the question
(\begin{array}{c|c} & Ade & Bola\ & N & N \ \hline \text{Capital Accounts} & 60,000 & 40,000\ \text{Current Accounts} & 10,000 Cr & 6,000 Cr \ \text{Drawings} & 8,000 & 2,000 \end{array})
Interest on drawings is 5%, interest on capital is 10%. Profit and losses are shared equally. Net profit for the year is N30,000. The total amount credit to the Profit and Loss Appropriation Account is

A
N40,500
B
N30,500
C
N30,000
D
N25,000
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19

Use the following information to answer the question
(\begin{array}{c|c} & Ade & Bola\ & N & N \ \hline \text{Capital Accounts} & 60,000 & 40,000\ \text{Current Accounts} & 10,000 Cr & 6,000 Cr \ \text{Drawings} & 8,000 & 2,000 \end{array})
Interest on drawings is 5%, interest on capital is 10%. Profit and losses are shared equally. Net profit for the year is N30,000. Bola's current account balance is

A
N18,150 Cr
B
N16,150 Cr
C
N10,150 Cr
D
N6,150 Cr
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20

Capital expenditure is the

A
cost of running a business
B
money spent on buying goods for resale
C
money spent on acquire fixed assets
D
extra capital paid in by the proprietor
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