WAEC 2025 BOOK KEEPING ANSWER


BOOKKEEPING
1-10: BDCDABBCCB
11-20: DADABADBAA
21-30: DBCCAABBDD
31-40: CCCAABCDCA


(1a)
(PICK FOUR ONLY)
(i) Cash book
(ii) Sales day book
(iii) Purchases day book
(iv) General ledger
(v) Debtors ledger
(vi) Creditors ledger
(vii) Journal proper
(viii) Petty cash book

(1b)
(PICK THREE ONLY)
(i) Accurate record keeping: Mr. Adamu would ensure all financial transactions are properly recorded and maintained.
(ii) Financial planning and control: With accurate records, the business can plan and control its finances effectively.
(iii) Preparation of financial statements: He would help in preparing profit and loss accounts and balance sheets.
(iv) Compliance with regulations: Proper bookkeeping ensures the business complies with tax and legal requirements.
(v) Detection and prevention of fraud: Regular and accurate record-keeping can help detect and prevent financial irregularities.
(vi) Informed decision-making: Reliable financial data provided by Mr. Adamu would aid in making sound business decisions.

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(3a)
A balance sheet is a financial statement that shows the financial position of a business at a specific point in time. It provides a summary of a company’s assets, liabilities, and owners' equity, helping stakeholders understand what the business owns and owes.

(3b)
(PICK ANY THREE)
(i) It shows the financial position of a business.
(ii) It is prepared at a specific date.
(iii) It contains assets, liabilities, and capital.
(iv) Total assets equal total liabilities plus capital.
(v) It does not record income or expenses.

(3ci)
Bought goods by cheque: This transaction reduces the bank balance (asset) and increases inventory (asset). The overall effect on the balance sheet is neutral as one asset decreases while another increases.

(3cii)
Paid creditors by cheque: This reduces both bank balance (asset) and accounts payable (liability). It decreases liabilities and decreases assets by the same amount, keeping the balance sheet balanced.

(3ciii)
Additional capital introduced by the owner: This increases cash or bank (asset) and increases owner’s equity (capital). It reflects more funds available to the business and a corresponding increase in the owner's stake.

(3civ)
Bought motor vehicle on credit: This increases fixed assets (motor vehicle) and increases accounts payable (liability). The business acquires an asset and incurs a liability, with no immediate effect on cash.

(3cv)
Owners withdrew money from the business: This reduces cash or bank balance (asset) and reduces owner’s equity (capital). It represents drawings by the owner, lowering the resources and equity of the business.

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(4a)
Depreciation is the gradual reduction in the value of a fixed asset over time due to wear and tear, usage, obsolescence, or passage of time. It represents the cost of using the asset and is recorded as an expense in the financial statements.

(4b)
(PICK ANY FOUR)
(i) Wear and Tear: Physical deterioration due to regular usage.
(ii) Passage of Time: Even without use, some assets lose value over time.
(iii) Obsolescence: Assets become outdated due to technological advancements.
(iv) Exhaustion: In the case of natural resources, depletion causes depreciation.
(v) Accidents or Damages: Unexpected events can reduce an asset’s value.
(vi) Lack of Maintenance: Poor upkeep can accelerate depreciation.
(vii) Legal or Regulatory Changes: New laws may reduce the usability or value of an asset.

(4c)
Scrap value is the estimated amount that a fixed asset can be sold for at the end of its useful life. It represents the residual value after the asset is no longer useful for operations.

WHILE

Estimated useful life of a fixed cost , on the other hand, is the expected time period during which the asset will be actively used in the business to generate income.

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(5)


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(6)


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(8)