2014 - WAEC Accounting Past Questions and Answers - page 3
The sum of direct cost in a manufacturing account is
Prime cost is the direct cost of a commodity in terms of the materials and labour involved in its production, excluding fixed costs.
When an asset is sold, the entries for the accumulated depreciation are; debit
Debit cash for the amount received, debit all accumulated depreciation, debit the loss on sale of asset account, and credit the fixed asset.
A petty cash account has an imprest of D28,000. The account has a debit balance of D5,000. How much cash is needed to restore the imprest?
- The petty cash monthly imprest= 28,000
- Debit balance (amount left in the imprest) = 5,000
- 28,000 - 5,000 = 23,000
- we need 23,000 to reimburse the imprest
In a not-for-profit making organization, when the total income is less than the total expenditure, the difference is a
A deficit occurs for a nonprofit organization whenever its expenses exceed its revenue. (income is less than expenditure) . This is also true of businesses and government agencies. Deficits can be difficult for nonprofit organizations to overcome because they are heavily dependent upon the generosity of donors to stay afloat.
The concept that states that a business should not lay claim to any profits before it is earned with reasonable certainty is
Accrual concept is the most fundamental principle of accounting which requires recording revenues when they are earned and not when they are received in cash, and recording expenses when they are incurred and not when they are paid.
When shares are issued above their nominal value, the excess above the nominal value is
A company issues its shares at a premium when the price at which it sells the shares is higher than their par value. The amount of the premium is the difference between the par value and the selling price and will be debited to the share premium account.
Shares issued below nominal value are referred to as shares at
Issue of Shares at Discount Definition: When a share is issued by the company at a price that is less than the face value of the share, the share is said to be issued at a discount.
\(\begin{array}{c|c} Capital & Le \ \hline Aye & 20,000\ Bee & 30,000\ Drawings & \ Aye & 8,000 \ Bee & 2,000 \ \text{Profit for the year} & 2,000\ \text{Interest on capital-6%} & \ \text{Interest on drawings - 10%} & \end{array}\)
Profit sharing is in the ratio of capital. The divisible profit is
\(\begin{array}{c|c} Capital & Le\ \hline Aye & 20,000\ Bee & 30,000\ Drawings & \ Aye & 8,000 \ Bee & 2,000 \ \text{Profit for the year} & 2,000\ \text{Interest on capital-6%} & \ \text{Interest on drawings - 10%} & \end{array}\).
Profit sharing is in the ratio of capital. Aye;s share of profit is
\(\begin{array}{c|c} Capital & Le\ Aye & 20,000\ Bee & 30,000\ Drawings & \ Aye & 8,000 \ Bee & 2,000 \ \text{Profit for the year} & 2,000\ \{text{Interest on capital-6%} & \ \text{Interest on drawings - 10%} & \end{array}\)
Profit sharing is in the ratio of capital. Bee's share of profit is