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WAEC questions for "Financial Accounting :: The Final Accounts of a Sole Trader"
Q1

Sule sets aside from his private funds ₦20,000 for business purposes. The ₦20,000 is referred to as

A

drawings

B

capital

C

loan

D

profit

E
Q2

Abu's balance at the end of the month is

A

¢30,505 cr

B

¢9,505 cr

C

¢9,505 dr

 

 

D

¢30,500 dr

E
Q3

In Danoa's books, to reecord the payment of ¢40,005 by Abu

A

debit Cash Account, credit Abu's Account

B

debit Abu's Account, credit Cash Account

C

debit Cash Account, credit Sales Account

D

debit Sales Account, credit Cash Account

E
Q4

Which of the following concepts is expected to hold when a proprietor makes a drawing of goods or cash from the business?

A

Business entity

B

Realization

C

Going concern

D

Dual-aspect

E
Q5

The profit of a sole trader increases his

A

stock

B

asset

C

liability

D

capital

E
Q6

The adjusted balance as per cash book is

A

₦10,800 Cr

B

₦5,800 Cr

C

₦5,800 Dr

D

₦10,800Dr

E
Q7

The balance as per bank statement statement is

A

₦8,000 Cr

B

₦6,000 Cr

C

₦6,000 Dr

D

₦8,000 Dr

E
Q8

The entry for rent received in the profit and loss account for the year ended 31st December 2005 is

A

credit profit and loss account with D4,500

B

credit profit and loss account with D2,500

C

debit profit and loss account with D2,500

D

debit profit and loss account with D4,500

E
Q9

The rent receivable accrued as at 31st December 2005 is shown in the balance sheet as

A

current asset

B

current liability

C

long-term liability

D

fixed asset

E
Q10

Revenue is recognised in the profit and loss account as soon as a

A

debtor pays what is due from him

B

sale of goods take place and money is received

C

sales of goods take place whether or not money is received

D

sale of a fixed asset take place

E
Q11

Which of the following is charged to trading account?

A

discounts allowed

B

carriage outwards

C

salaries

D

carriage inwards

E
Q12

Use the following information to answer question 49

D
Rent accrued !st January, 2005 600
Rent paid in 2005 11,300
Rent prepaid 31st December, 2005 500

Rent expenses for the year 2005 is
A

₦11,400

B

₦11,300

C

₦11,200

D
₦10,200
E
Q13

Uncredited cheques totalled

A

₦3,600

B

₦2,540

C

₦1,060

D

₦630

E
Q14

Adjusted Cash Book balance is

A

₦3,800 O/D

B

₦3,310 O/D

C

₦3,030 O/D

D

₦2,540 O?D

E
Q15

Unpresented cheque(s) totalled

A

₦9,120

B

₦7,090

C

₦1,400

D

₦630

E
Q16

An example of fixed asset is

A

Creditors

B

Goodwill

C

Accruals

D

Furniture

E
Q17

Gross profit is calcutated in the

A

Trading Account

B

Profit and Loss Account

C

Appropriation Account

D
E
Q18

Resources consumed but to be paid for within the next accounting period are classified in the balance sheet as

A

current liabilities

B

current assets

C

long-term liabilities

D

capital

E
Q19

Where a proprietor withdraws stock for personal consumption, the accounting entries to record the transaction are

A

debit Drawings Account, credit Purchases Account

B

debit Purchases Account, credit Drawings Account

C

debit Sales Account, credit Drawings Account

D

debit Drawings Account, credit Sales Account

E
Q20

Which of the following is correct about cost of goods sold?

A

Opening stock + purchases - closing stock

B

Opening stock + sales - closing stock

C

Opening stock - purchases - closing stock

D

Opening stock + sales + closing stock

E
Q21

Net debtors is

A

debtors less provision for bad debts

B

debtors plus provision for bad debts

C

debtors less prepayments

D

debtors plus prepayments

E
Q22

Gross profit is

A

₦1,850

B

₦1,250

C

₦950

D

₦650

E
Q23

The cost of goods available is

A

₦3,850

B

₦2,900

C

₦2,300

D

₦2,000

E
Q24

Which of the following is not correct?

A

Credit sales are entered on the debit side of the customers personal account

B

Credit purchases are entered on the debit side of the supplier's personal account

C

Return inwards are entered on the credit side of the customer's personal account

D

Return outwards are entered on the debit side of the supplier's account

E
Q25

Which of the following is not correct?

   Assets  Liabilities  Capital
   ₦  ₦  ₦
 A.  95,550  11,500  82,000
 B.  82,000  28,000  54,000
 C.  78,500  12,500  66,000
 D.  65,400  11,200  54,200

A

Assets ₦95,550   Liabilities  ₦ 11,500   Capital₦ 82,000

B

Assets ₦82,000 Liabilities ₦28,000  Capital ₦54,000

C

Assets ₦78,500 Liabilities ₦12,500 Capital ₦66,000

D

Assets ₦65,400 Liabilities ₦11,200 Capital ₦54,200

E
Q26

Patent and trademarks are classified under

A

intangible assets

B

current assets

C

fixed assets

D

wasting assets

E
Q27

Purchases for the year was

A

₦19,400

B

₦19,000

C

₦18,000

D

₦17,000

E
Q28

Cost of sales for the year was

A

₦19,800

B

₦19,400

C

₦18,400

D

₦17,400

E
Q29

Opening creditors was ₦65,000, closing creditors was ₦41,000. Credit purchases was ₦200,000 and discount received ₦3,000. How much was paid to creditors?

A

₦262,000

B

₦224,000

C

₦221,000

D

₦176,000

E
Q30

In which of the following  is purchase of fixed assets on credit first recorded?

A

Purchases Journal

B

Journal Proper

C

Cash Book

D

General Ledger

E
Q31

The profit or loss on sale was

A

₦17,000 profit

B

₦17,000 loss

C

₦16,000 profit

D

₦16,000 loss

E
Q32

The net book value at the time of sale was

A

₦33,000

B

₦30,000

C

₦17,000

D

₦16,000

E
Q33

The Adjusted Cash Book Balance is

A

₦18,900

B

₦18,000

C

₦17,700

D

₦16,500

E
Q34

Carriage inward expenses of a business is treated in

A

trading account

B

balance sheet

C

appropriation account

D

profit and loss account

E
Q35

The value of current liabilities is

A

₦32,750

B

₦20,150

C

₦19,750

D

₦17,000

E
Q36

The value of current assets is

A

₦28,500

B

₦20,150

C

₦19,750

D

₦17,000

E
Q37

The opening capital is

A

₦32,000

B

₦26,000

C

₦25,600

D

₦14,000

E
Q38

The value of fixed assets is

A

₦57,300

B

₦47,500

C

₦40,000

D

₦37,500

E
Q39

How much is charged to Profit and Loss account for the year 2000?

A

₦45,000

B

₦42,000

C

₦36,000

D

₦33,000

E
Q40

How much is carried in the Balance Sheet as 31st December, 2000?

A

₦45,000

B

₦12,000

C

₦9,000

D

₦4,500

E
Q41

The amount carried in the Balance Sheet is classified as

A

current asset

B

current liability

C

capital

D

long-term liability

E
Q42

Amount spent on stationery is

A

₦765

B

₦585

C

₦538

D

₦437

E
Q43

Amount to be reimbursed at the end of the month is

A

₦4,000

B

₦3,728

C

₦3,483

D

₦1,842

E
Q44

What was the book value when the asset was sold?

A

₦8,000

B

₦6,000

C

₦4,000

D

₦2,000

E
Q45

What is the profit or loss on the disposal of the asset?

A

₦4,000 profit

B

₦2,000 profit

C

₦2,000 loss

D

₦4,000 loss

E
Q46

What is the correct entry for sale of the asset in the Asset Account and Disposal of Asset Account? Debit

A

Fixed Asset Account ₦4,000, credit Disposal of Assets Account ₦4,000

B

Disposal of Asset Account ₦4,000, credit Fixed Asset Account ₦4,000

C

Disposal of Asset Account ₦2,000, credit Fixed Asset Account ₦2,000

D

Fixed Asset Account ₦2,000, credit Disposal of Assets Account ₦2,000

E
Q47

Percentage of net profit sales is

A

40%

B

30%

C

20%

D

10%

E
Q48

Gross profit is

A

₦70,000

B

₦60,000

C

₦50,000

D

₦40,000

E
Q49

Gross profit of a business is the

A

excess of sales over all the trading expenses

B

difference between sales and purchases

C

excess of sales over the cost of goods sold

D

difference between discounts receive and discounts allowed

E
Q50

Rent charged to the Profit and Loss Account for the year 1998 is

A

₦2,000

B

₦1,700

C

₦1,400

D

₦1,300

E
Q51

The closing balance for 1998 is an item under

A

current liability

B

current asset

C

long term liability

D

fixed asset

E
Q52

If the vehicle is sold for ₦6,000 at the end of the third year, what is the profit or loss on sale?

A

₦1,000 profit

B

₦500 profit

C

₦500 loss

D

₦1,000 loss

E
Q53

Bills receivable is a

A

current liability

B

current asset

C

long-term liability

D

fictitious asset

E
Q54

Gross profit

A

₦10,350

B

₦10,200

C

₦9,500

D

₦9,100

E
Q55

Net sales is

A

₦15,000

B

₦14,750

C

₦14,600

D

₦14,450

E
Q56

Net Profit is

A

₦15,000

B

₦14,750

C

₦14,600

D

₦14,450

E
Q57

Carriage outwards is charged to

A

Trading Account

B

Appropriation Account

C

Purchases Account

D

Profit and Loss Account

E
Q58

The cash in hand on 31st July is

A

₦2,220

B

₦2,078

C

₦1,642

D

₦578

E
Q59

The cash at bank on 31st July is

A

₦10,100

B

₦8,900

C

₦7,400

D

₦5,900

E
Q60

The total cash payments during the month is

A

₦2,220

B

₦2,078

C

₦1,642

D

₦578

E