WAEC 2019 - BOOKKEEPING ANSWERS
BOOKKEEPING 2019 ANSWER
A trading account can be any investment account containing securities, cash or other holdings.
(iii) carriage inward
(iv) Carriage outward
(vi) Gross profit
(vii) Net profit
(viii) Opening stock
Discount is an allowance or concession in price. Discount is given so that the buyer is induced (lured) to place an order and later to make payment in time.
(i)Lower Business Costs. A significant trade discount advantage is the small business' ability to lower operational business costs.
(ii) Increase Purchasing Power.
(iii) Improve Goodwill.
(iv) Higher Consumer Sales.
(i)Attracting New and Repeat Customers.
(ii)Increase Sales Across the Board.
(iii)Free Up Room in Your Store.
(iv)Meet Sales Goals.
Depreciation refers to two aspects of the same concept: The decrease in value of assets The allocation of the cost of assets to periods in which the assets are used. Depreciation is a method of reallocating the cost of a tangible asset over its useful life span of it being in motion.
(i) To Calculate the True Profits
(ii) To show true Financial Position
Fixed Instalment: fixed installment method of depreciation the amount of depreciation each year is fixed and equal. At the end of each year, a fixed amount is removed from the book value of the asset concerned and charged to profit and loss account (or income statement ).
Dimishing Balance:Diminishing balance depreciation method is one of the three
depreciation methods that mention in This kind of depreciation method is said to be high charged at the first period, and then subsequently reduce.
This is because the charging rate is applying to the Net Book Value of Assets and the Net Book Value of Assets is reduce from time to time after charging
Provision for doubtful debt account
Dec 31 balance c/d 400,000
Dec 31 balance c/d 600,000
Dec 31 profit & loss 380,000
Dec 31 profit & loss 570,000
Suspense of account being error of principle and now corrected
Suspense account being error of parties omission now corrected
Suspense account being error of principle of complete
Return inward account
Suspense account under cast in return inward now corrected
difference in trial balance recorded
Lammidu's AK 76,200
Discount allowed 57,000
Discount received 57,000
Return inward 30,000
FORUM POST LOCKED FOR COMMENTING