WAEC 2019 FINANCIAL ACCOUNTING (OBJ & THEORY) ANSWER EXPO

ACCOUNTING OBJ:

1-10: BCABABBCCC

11-20: ACADBCBDDB

21-30: ACBCCACBAB

31-40: BDBADCCDAB

41-50: CBBBBBDCCB

(2a)

Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.

(2b)

(i)Branches are separated from the main organization while Department are attached with the main organization under a single roof

 

 

(ii)Branches are geographically separated while Department are not separated rather exist under the same roof

(iii)Allocation of branch common expenses does not arise while allocation of departmental common expenses is a tough job

(2c)

(Pick four)

(i)It enables the organization to determine the branch that is making either profit or loss

(ii)It helps to determine the performance of the organization as a whole

(iii)It allows proper control over the branch by the head office

(iv)it also assists the organization to determine the performance of a branch manager

(v)it prevent wastage and fraud from the staff

(4a)

(i)Insufficient Funds: Salaries sometimes reach late in accounts leaving insufficient funds in your account which may lead to bouncing of cheque.

(ii)Irregular Signature: Bank will not honour a cheque if the signature of the drawer on the cheque don’t match the specimen signature available with the bank.

(iii)Alterations: Alterations on cheques are not allowed. Even if you sign the alteration to verify it, the cheque will not be considered as valid and will not be honoured by the bank.

(4b)

(i)Petty cash float: these is small amount of cash kept at hand for making immediate payments for miscellaneous small expenses.

(ii)Contra entries: is an entry which is recorded to reverse or offset an entry on the other side of an account. If a debit entry is recorded in an account, it will be recorded on the credit side and vice-versa.

(iii)Imprest system: is a form of financial accounting system. The most common imprest system is the petty cash system. In other words it is a fixed amount that is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.

(4c)

(i)Reduction in numbers of transactions: Many expenses of small nature recorded in petty cash book, the number of transactions is reduced in the cash.

(ii)Reduction of errors: As head cashier check the accounts of previous month and gives advance for the coming month, does, errors if any are reduced.

(iii)Savings of time and labour: As the petty expenses are recorded by petty cashier at any time so that the chances of misuse are minimised.

(6a)

TABULATE

In the books of Ubochi and Hassanah

Profit and Loss appropriation account for the year ended 31/12/2015

DEBIT SIDE:

Int. on Capital:

U-8/100*300000=24000

H-8/100*250000=20000

Salary:

Hassanah: 10000

Share of profit:

U-3/5*247750=148650

H-2/5*247750=99100

TOTAL 301750

CREDIT SIDE:

Net profit:300000

Int. on drawing

U-5/100*2000=1000

H-5/100*15000=750

TOTAL=301750

(6b)

TABULATE

Patner’s current account

DEBIT SIDE: U|H

Drawing|20000|15000

Int on Drawing|10000|750

Bal c/d|151650|113350

CREDIT SIDE: U|H

Int. on cap|24000|20000

Salary|-|10000

Share of profit:|148600|99100

(9)

Stock turnover Ratio = COGS/Avg stock

= 160,000/(3,0000 + 4,0000)/2)

= 200000 x 2/10000 = 11.43 times

(9b) Gross Profit Margin = Gross Profit/Sales x 100/1

= 160,000/360,000 x 100/1 = 44.44%

(9c) Net Profit Margin = Net Profit/Sales x 100/1

= 40,000/360,000 x 100/1 = 11.11%

(9d) Current Ratio = current Assets/Current Liabilities

Current Assets = 90,000/45,000 = 2:1

(9e) Acid Test Ratio = Current Assets – Stock / Current Liabilities

= 90,000 – 40,000/45,000

= 50,000/45,000 = 10:9

1-10: BCABABBCCC

11-20: ACADBCBDDB

21-30: ACBCCACBAB

31-40: BDBADCCDAB

41-50: CBBBBBDCCB

(2a)

Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.

(2b)

(i)Branches are separated from the main organization while Department are attached with the main organization under a single roof

 

 

(ii)Branches are geographically separated while Department are not separated rather exist under the same roof

(iii)Allocation of branch common expenses does not arise while allocation of departmental common expenses is a tough job

(2c)

(Pick four)

(i)It enables the organization to determine the branch that is making either profit or loss

(ii)It helps to determine the performance of the organization as a whole

(iii)It allows proper control over the branch by the head office

(iv)it also assists the organization to determine the performance of a branch manager

(v)it prevent wastage and fraud from the staff

(4a)

(i)Insufficient Funds: Salaries sometimes reach late in accounts leaving insufficient funds in your account which may lead to bouncing of cheque.

(ii)Irregular Signature: Bank will not honour a cheque if the signature of the drawer on the cheque don’t match the specimen signature available with the bank.

(iii)Alterations: Alterations on cheques are not allowed. Even if you sign the alteration to verify it, the cheque will not be considered as valid and will not be honoured by the bank.

(4b)

(i)Petty cash float: these is small amount of cash kept at hand for making immediate payments for miscellaneous small expenses.

(ii)Contra entries: is an entry which is recorded to reverse or offset an entry on the other side of an account. If a debit entry is recorded in an account, it will be recorded on the credit side and vice-versa.

(iii)Imprest system: is a form of financial accounting system. The most common imprest system is the petty cash system. In other words it is a fixed amount that is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.

(4c)

(i)Reduction in numbers of transactions: Many expenses of small nature recorded in petty cash book, the number of transactions is reduced in the cash.

(ii)Reduction of errors: As head cashier check the accounts of previous month and gives advance for the coming month, does, errors if any are reduced.

(iii)Savings of time and labour: As the petty expenses are recorded by petty cashier at any time so that the chances of misuse are minimised.

(6a)

TABULATE

In the books of Ubochi and Hassanah

Profit and Loss appropriation account for the year ended 31/12/2015

DEBIT SIDE:

Int. on Capital:

U-8/100*300000=24000

H-8/100*250000=20000

Salary:

Hassanah: 10000

Share of profit:

U-3/5*247750=148650

H-2/5*247750=99100

TOTAL 301750

CREDIT SIDE:

Net profit:300000

Int. on drawing

U-5/100*2000=1000

H-5/100*15000=750

TOTAL=301750

(6b)

TABULATE

Patner’s current account

DEBIT SIDE: U|H

Drawing|20000|15000

Int on Drawing|10000|750

Bal c/d|151650|113350

CREDIT SIDE: U|H

Int. on cap|24000|20000

Salary|-|10000

Share of profit:|148600|99100

(9)

Stock turnover Ratio = COGS/Avg stock

= 160,000/(3,0000 + 4,0000)/2)

= 200000 x 2/10000 = 11.43 times

(9b) Gross Profit Margin = Gross Profit/Sales x 100/1

= 160,000/360,000 x 100/1 = 44.44%

(9c) Net Profit Margin = Net Profit/Sales x 100/1

= 40,000/360,000 x 100/1 = 11.11%

(9d) Current Ratio = current Assets/Current Liabilities

Current Assets = 90,000/45,000 = 2:1

(9e) Acid Test Ratio = Current Assets – Stock / Current Liabilities

= 90,000 – 40,000/45,000