2012 - WAEC Accounting Past Questions and Answers - page 5
A loss made on the disposal of a fixed assets is debited to
Loss on sale; Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset
Use the following information to answer the given question
\(\begin{array}{c|c} & D \ \hline \text{Cash in hand}& 1,440\ \text{Cash at bank} & 2440\ \text{Stock} & 2,500\ \text{Furniture and fittings} & 2,200 \ \text{Creditors} & 1,000\end{array}\)
The capital is
Capital is a term for financial assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.
Use the following information to answer the given question
\(\begin{array} {c|c} & D \ \hline \text{Cash in hand}& 1,440\ \text{Cash at bank} & 2440\ \text{Stock} & 2,500\ \text{Furniture and fittings} & 2,200 \ \text{Creditors} & 1,000\end{array}\)
The liability is
A liability is an obligation arising from a past business event. They are obligations owed to outsiders by a business
Creditor; is a person or company to whom money is owed.
From the table above, liabilities is 1,000.
Use the following information to answer the given question
\(\begin{array}{c|c} & Le\ \hline \text{Construction and hospital wards} & 300,000\ \text{purchase of hospital beds} & 40,000 \ \text{salaries and wages}& 80,000\ \text{Purchase of drugs} & 55,000\ \text{purchases of x-ray machine} & 150,000\end{array}\)
Capital expenditure for the year was
capital expenditures; money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.
300,000 + 40,000 + 150,000 = 490,000
\(\begin{array}{c|c} & Le\ \hline \text{Construction and hospital wards} & 300,000\ \text{purchase of hospital beds} & 40,000 \ \text{salaries and wages}& 80,000\ \text{Purchase of drugs} & 55,000\ \text{purchases of x-ray machine} & 150,000\end{array}\)
The amount of recurrent expenditure was
Recurrent expenditure on goods and services is expenditure, which does not result in the creation or acquisition of fixed assets (new or second-hand). It consists mainly of expenditure on wages, salaries and supplements, purchases of goods and services and consumption of fixed capital (depreciation).
80000 + 55000 = 135000
Use the following information to answer the given question.
BALANCE SHEET AS AT 31st DECEMBER, 2010
\(\begin{array}{c|c} & ₦ & & ₦ \ \hline \text{Capital}& 40,000 & \text{Freehold premises} & 50,000\ \text{Less: Net loss} & \frac{5,000}{35,000} & \text{Stock} & 3,000\ \text{Less: Drawings} & \frac{2,000}{33,000} & \text{Debtors} & 4,000\ \text{Long term loan} & \frac{20,000}{53,000} & \text{Cash at bank} & 6,500\ \text{Creditors} & 8,000\ \text{Accrued expenses} & \frac{4,000}{65,000} & \text{Cash in hand} & 1,500\ & & & \text{Total 65,000}\end{array}\)
The amount of working capital is
Working capital = current assets - current liabilities
current assets= 3000 + 4000 + 6500 + 1500 = 15000
current liabilities= 8000 + 4000 = 12000
15000 - 12000 = 3000
Use the following information to answer the given question.
BALANCE SHEET AS AT 31st DECEMBER, 2010
\(\begin{array}{c|c} & ₦ & & ₦ \ \hline \text{Capital}& 40,000 & \text{Freehold premises} & 50,000\ \text{Less: Net loss} & \frac{5,000}{35,000} & \text{Stock} & 3,000\ \text{Less: Drawings} & \frac{2,000}{33,000} & \text{Debtors} & 4,000\ \text{Long term loan} & \frac{20,000}{53,000} & \text{Cash at bank} & 6,500\ \text{Creditors} & 8,000\ \text{Accrued expenses} & \frac{4,000}{65,000} & \text{Cash in hand} & 1,500\ & & & \text{Total 65,000}\end{array}\)
Working capital ratio is
The working capital ratio is calculated simply by dividing total current assets by total current liabilities.
Current assets = 3000 + 4000 +6500 + 1500 = 15000
Current liabilities = 8000 + 4000 = 12000
15000/12000 = 1.25