WAEC 2016 FINANCIAL ACCOUNTING QUESTIONS AND ANSWERS NOW AVAILABLE FOR FREE

Tuesday 19th April 2016 FINANCIAL ACCOUNTING (ESSAY ) 9.30AM � 1PM FINANCIAL ACCOUNTING ( OBJ & ESSAY ) 9.30AM � 1.00PM ACCOUNT OBJ: 1-10: CCBBCACCCD 11-20: CCBCBBDBBB 21-30: CAADADBCBA 31-40: ABDCDACBBB 41-50: BBDDADCCCC (1a) General journal is the accounting version of our personal journals. It doesn't record everything that happens to the business, of course, but it does record every financial transaction that takes place (sometimes alone, sometimes as a group of similar transactions). Like our personal journal entries, it notes the date, the accounts involved, and the amounts of money, as well as providing a brief description of what happened. (1b) -Opening entries -Closing entries -Correction of errors -Transfer between accounts -Purchase of fixed assets on credit (2ai) -Discount Allowed -Bills receivable -Bad debts -Return inwards (2aii) -Discount Received -Bills Payable -Cash to suppliers -Return outwards (2b) -Error of original entry -Error of omission -Error of commission -Error of principle -Compensating errors -Complete reversal of entry (4a) Depreciation is the measure of the wearing out, consumption or other loss of value of a fixed asset whether arising from use, effluxion of time or obsolescence through technology and market changes (4b) (i) Physical deterioration (ii) Obsolescence (iii) The time factor (iv) Economic factor (v) Inadequacy (4c) (i) Straight line: This allows an equal amount to be charged as depreciation for each year of expected use of the asset. The basic formulae is Cost- Estimated residual value/ number of years of expected use. Advantages: (i)it is simple to calculate (ii)It is time oriented Disadvantages: (i)Assumption of equal or constant revenue per year is unrealistic (ii)Might lead to a misleading picture of the financial statement (4cii) Reducing balance: Under this method, the depreciation charged per annum is determined by applying a fixed rate of depreciation on the net book value of the asset at the beginning of each year. Disadvantage of reducing balance: Difficulty in calculating the rate of depreciation (4ciii) Revaluation: By this method, the asset is revalue each year, any difference will be charged as depreciation to the profit and loss account. The value of the asset at the beginning and end of the year must be known.. The calculations is as follows Opening stock ** Add: purchase ** --- Less: closing stock ** (5)Adjusted Cash book: Debit side: Bal b/f(4500) dividend(320) under(180) 5000 Credit side: subscri(350) charges(500) electricity(70) insurance(100) medical(120) bal(3860) 5000 bank reconcilation statement: bal as per adj cash book(3860) add unpresented chequer(4800) 8660 uncredited cheque(1990) bal as per bank statement(6670) MORE ANSWERS LOADING.....