Waec 2018 Financial Accounting Answers / Financial Accounting Obj And Theory Answers Expo

Waec 2018 Financial Accounting Answers

Waec 2018 Financial Accounting Answers, Questions And Answers Expo Posted Here, WASSCE 2018 Financial Accounting Obj And Theory Answers May/June Expo, Waec 2018 Accounting Answers

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– It can result in a business exhausting the budget, leading to spending more than
what is coming in.

– Businesses may need to file for bankruptcy or shut their doors if they fail to keep adequate records from the

-It can result in problems with suppliers, payroll, utilities, and other vital components to a running successful business.

– Relevance means an account information to make a difference in decision making
– Comparability means an account information can be used to compare different entities
– Consistency: information is consistently presented from year to year
– Reliability means an account information is verifiable, factual, and neutral

– Accounting information is historical in nature
– there is no information as to usefulness, size or quantity because accounting is expressed in monetary terms


DIRECT MATERIALS COST: This is the expenditure incurred on raw materials which can be traced to a particular production units.. E.g orange in fantasy making.

*DIRECT LABOUR COST: This refers to the wages of employees who are directly engaged in the production process as e.g wages of machine operator.

These relates to the expenditure incurred in running the factory which cannot be traced to a particular production units..

2 b )
i ) RAW MATERIALS: These are the materials or goods purchased by the manufacturer . Manufacturing process is applied on the raw material to produce desired finished goods.
ii) WORK – IN- PROGRESS (WIP): These are the partly processed raw materials lying on the production floor .
iii ) FINISHED GOODS: These are the final products after manufacturing process on raw materials. They are sold in the market . There are two kinds of manufacturing industries .


*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) Compare the results among the different departments together with the previous results thereof,

(ii) Formulate policy in order to extend or to develop the enterprise in the proper line; and


– employees
– banks
– government
– creditors
– analyst
– owners


Cash book Adjustment
Bal bld N 48,500
interest on investment N 2500
credit transfer N 3000
Left Table
Bank Charges N 1000
Dishonured cheques N 2000
bal cld N 51,000
Total Bal bld N 51,000

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


Statement Of affairs as at 1 | 1 | 06
Right Table
Capital ( Opening ) N 30,000
Creditors N 1 ,000
Insurance N 2 ,000
N 33,000
Left Table
Land And Building N 15,000
Motor Vechicle N 6 ,000
Stock N 4 ,000
Cash N 6 ,000
Debtors N 2 ,000
N 33,000

Trading Profit and loss account for the year ended 31st december 2016
Right Table
opening stock N 4000
purchases N 11,500
Closing Stock ( 2 ,000 )
Cost of goods sold 13500
gross profit cld 17500
salaries N 5000
rent and rates N 4000
insurance N 5000
dep on motor vechicle N 2000
net profit N 1500
Left Table
Sales N 31,000
gross profit b | d N 17,500
N 17,500

Balance Sheet as at 31| 12| 2006
Right Tabule
Capital N 30,000
add net profit N 1500
N 31,500
current liability
creditor N 500
insurance Owning N 6000
N 38,000
Table Left
Fixed Assests
Land and Building N 15,000
motor vehicle N 4000
current assets
stock N 2000
debtors N 3000
Cash N 14,000
N 38,000


Obihan trading profit and loss account

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

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