Quiz 2 of 14

2020 Accounting WAEC Theory Past Questions

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(a) Differences between bookkeeping and accounting;

(b) Source documents used for the following transactions:

(c) Purposes of source documents:
i. They serve as evidence or proof of financial transaction.
ii. They help in the location of errors.
iii. They serve as sources of verification for auditing purposes.
iv. They help to minimize fraudulent activities in an organization.
v. They provide detailed information used in the preparing of books of account
vi. They serve as evidence in legal matters.

(a)
Not-for-profit making organizations are organizations set up for the purpose of catering for the welfare of their members. They are not set up to make profit.

(b)
Differences between for profit-making organizations and Not-for-profit making organizations.

(c)
Sources of funding in a not-for-profit making organization;
i. Subscription: This is the contribution made by the members to the club or society at regular intervals. Subscription can be paid in advance or arrears.
ii. Life membership fee: This is an amount paid once by a member of the organization. In order to enjoy the facilities throughout the period of membership.
iii. Entrance Fees: This is the amount paid once at the point of admission into membership of an organization.
iv. Donations: This is the cash or any items received by the organization as gift from other people.

(a) Fixed Capital Account: This is a type of capital account where the capital amount will remain at the same figure during the partnership.

(b) Conditions that would result in the change in profit and loss sharing ratio of a partnership:
i. Where a partner dies.
ii. On the admission of a new partner
iii. Changes in skill contributed by partner
iv. On the retirement of a partner
v. On the resignation of a partner
vi. When there is a takeover of a partnership
vii. On the amalgamation of partnership
viii. When there is a change in status of a partner e.g. from dormant partner to an active partner.

(c) Circumstances that would give rise to the creation of goodwill in a partnership:
i. On the admission of a new partner
ii. When there is a change in sharing profit ratio
iii. On the death of a partner
iv. On dissolution of the partnership
v. On the retirement of a partner
vi. On amalgamation of partnership

(ai) Books of Accounts used in Public Sector Accounting:
i. Payment voucher
ii. Receipt voucher
iii. Vote book
iv. Cashbook
v. Imprest cash book
vi. Register of vouchers
vii. Salary abstract
viii. Stores receipt vouchers
ix. Stores issue voucher
x. Revenue collectors cash book

(aii) Users of Public Sector Accounting:
i. Auditors
ii. Accountants
iii. Governments
iv. Financial institutions or analysts
v. Foreign Investors
vi. General public or Employees
vii. International organization e.g. World bank
viii. Suppliers
ix. Trade Unions
x. Civil society organization

(b) Differences between Private sector and Public Sector Accounting:

 

 

YALLAWA STORES LTD. DEPARTMENTAL, TRADING, PROFIT, AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 2017



 

(a) Differences between bookkeeping and accounting;

(b) Source documents used for the following transactions:

(c) Purposes of source documents:
i. They serve as evidence or proof of financial transaction.
ii. They help in the location of errors.
iii. They serve as sources of verification for auditing purposes.
iv. They help to minimize fraudulent activities in an organization.
v. They provide detailed information used in the preparing of books of account
vi. They serve as evidence in legal matters.

(a)
Not-for-profit making organizations are organizations set up for the purpose of catering for the welfare of their members. They are not set up to make profit.

(b)
Differences between for profit-making organizations and Not-for-profit making organizations.

(c)
Sources of funding in a not-for-profit making organization;
i. Subscription: This is the contribution made by the members to the club or society at regular intervals. Subscription can be paid in advance or arrears.
ii. Life membership fee: This is an amount paid once by a member of the organization. In order to enjoy the facilities throughout the period of membership.
iii. Entrance Fees: This is the amount paid once at the point of admission into membership of an organization.
iv. Donations: This is the cash or any items received by the organization as gift from other people.

(a) Fixed Capital Account: This is a type of capital account where the capital amount will remain at the same figure during the partnership.

(b) Conditions that would result in the change in profit and loss sharing ratio of a partnership:
i. Where a partner dies.
ii. On the admission of a new partner
iii. Changes in skill contributed by partner
iv. On the retirement of a partner
v. On the resignation of a partner
vi. When there is a takeover of a partnership
vii. On the amalgamation of partnership
viii. When there is a change in status of a partner e.g. from dormant partner to an active partner.

(c) Circumstances that would give rise to the creation of goodwill in a partnership:
i. On the admission of a new partner
ii. When there is a change in sharing profit ratio
iii. On the death of a partner
iv. On dissolution of the partnership
v. On the retirement of a partner
vi. On amalgamation of partnership

(ai) Books of Accounts used in Public Sector Accounting:
i. Payment voucher
ii. Receipt voucher
iii. Vote book
iv. Cashbook
v. Imprest cash book
vi. Register of vouchers
vii. Salary abstract
viii. Stores receipt vouchers
ix. Stores issue voucher
x. Revenue collectors cash book

(aii) Users of Public Sector Accounting:
i. Auditors
ii. Accountants
iii. Governments
iv. Financial institutions or analysts
v. Foreign Investors
vi. General public or Employees
vii. International organization e.g. World bank
viii. Suppliers
ix. Trade Unions
x. Civil society organization

(b) Differences between Private sector and Public Sector Accounting:

 

 

YALLAWA STORES LTD. DEPARTMENTAL, TRADING, PROFIT, AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER, 2017