2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS

2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS

WAEC 2018 – ACCOUNT ANSWERS

WAEC 2018 – ACCOUNT ANSWERS
Thursday, 19th April, 2018
Financial Accounting 2 (Essay) – 09:30 a.m. – 12:00 noon
Financial Accounting 1 (Objective) – 12:00 noon – 1:00 p.m.

Biology 2 (Essay) – 2:00 p.m. – 3:40 p.m.
Biology 1 (Objective) – 3:40 p.m. – 4:30 p.m.
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ACCOUNT OBJ:
1-10: DABDABABBC
11-20: BCAADBBBAA
21-30: ADCABCBDDC
31-40: BACBDDACDB
41-50: CCCBACCCAC
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(1a)
(i) It can result in a business exhausting the budget, leading to spending more than
what is coming in.
(ii) Businesses may need to file for bankruptcy or shut their doors if they fail to keep adequate records from the
beginning.
(iii) It can result in problems with suppliers, payroll, utilities, and other vital components to a running successful business.

(1b)
(i) Relevance means an account information to make a difference in decision making
(ii) Comparability means an account information can be used to compare different entities
(iii) Consistency: information is consistently presented from year to year
(iv) Reliability means an account information is verifiable, factual, and neutral

(1c)
(i) Accounting information is historical in nature
(ii) There is no information as to usefulness, size or quantity because accounting is expressed in monetary terms

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(2a)
(i) Direct material cost: It is the expenditure incurred on raw materials which can be traced to a particular production unit.
Example: Orange in fanta making.
(ii) Direct labour cost: This refers to the wages of employees who are directly to engaged in the production process.
Example: Wage of machine operator.
(iii) Factory overhead: It relate to expenditure incurred in running the factory which cannot be traced to a particular production unit.
Example: Indirect wages.

(2b)
(i) Opening stock: This is the brought-forward stocks from the previous year.
(ii) Closing stock: This is the stock at the end of every trading year
(iii) Work-in-progress: This the total value of the materials and labour for unfinished projects.

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(3a)
Where a big business with diverse trading activities is conducted under the same roof the same is usually divided into several departments and each department deals with a particular kind of goods or service. For example, a textile merchant may trade in cotton, woolen and jute fabrics. The overall performance for this type of business depends, however, on departmental efficiency.

(3b)
(i) It helps the management to make proper plan of action, policies in order to increase profit after analysing the results of operation of various departments.
(ii) Departmental accounting helps us to understand which department should be expanded further or which one should be closed down as per the results of the operation.

6 a )
Tabulate
Cash book Adjustment
Bal bld N 48,500
interest on investment N 2500
credit transfer N 3000
54,000
Left Table
Bank Charges N 1000
Dishonured cheques N 2000
bal cld N 51,000
54,000
Total Bal bld N 51,000
6 b )
Tabulate
Bank Reconcilation statement at 31/ 12/ 2016
balance as per adjusted cash book N N 51,000
add unpresented cheques 8850
add back wrong credit 3500
12,350 / 63,350
less uncredited cheques ( 8450)
balance as per bank statement N 54,900

9)
Obihan trading profit and loss account

SALES = 1,200,000
Less return inward =
15,000
= 1,185,000

Less cost of sales
Opening stock = 3000,000
Add purchase 1,050,000
Less return outward = 18,600

Net purchase=1,031,400
Cost of goods available. =1,331,400
Less closing stock=360,000
Cost of goods sold=971,400
GROSS PROFIT=213600

LESS OPERATIVE EXPENSIVE
Rates (18,000 +1,500) = 16,500
Rates ( 18,000 + 660) = 3,660
Salaries (90,000 + 15,000) = 105,000
Bad Debits = 600
Insurance = 93,000
Depreciation: Furniture 9,000
Machineries = 18,000
Provision for bad debit = 540
NET LOSS 246,300
32,700

(7a)
STATEMENT OF AFFAIRS AS AT 1ST JANUARY
DEBIT SIDE:
LIABILITIES:
Opening capital:29500
Creditors:1000
Insurance owing:2000
=32500
CREDIT SIDE
ASSETS:
Land and buildings:15000
Motor vehicle:6500
Stock:4000
Debtors:1000
Cash:6000
=32,500

CREDITORS LEDGER CONTROL ACCOUNT
DEBIT SIDE:
Payment to creditors:12000
Bal c/d:500
=12500
DEBIT SIDE:
Bal b/d:1000
Missing purchases:11500
=12500
DEBTORS LEDGER CONTROL ACCOUNT
DEBIT SIDE:
Bal b/d:2000
Missing sales:21000
=23000
CREDIT SIDE:
Cash recieved:20000
bal c/d:3000
=23000
CREDIT SIDE:

(7b)
TRADING PROFIT AND LOSS ACCOUNT FOR YEAR ENDED 31/12/2016
DEBIT SIDE:
Opening stock:4000
Add purchases:11500
C.O.G.A.S=1500
Less closing stock:2000
C.O.G.S=13500
Gross profit:17500
=31000
Salaries:5000
Rent and rates:4000
Insurance:1000
Net profit:7500
=17500
CREDIT SIDE:
Sales:(credit):21000
(cash):10000
=31000
Gross profit b/d:17500
=17500
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2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS
2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS
2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS
2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS
2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS
2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS
2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS
2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS
2018 WAEC EXPO RUNZ ON ACCOUNTING OBJ & THEORY ANS

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