2024 WAEC GCE SECOND SERIES (NOVEMBER) FINANCIAL ACCOUNTING: 2024 WAEC GCE Second Series FINANCIAL ACCOUNTING ANSWERS (9332)
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ACCOUNT OBJ:
1-10: BCD****BDD
11-20: DACBDDDDAC
21-30: DBDCCAABCC
31-40: BDCCDCACDD
41-50: CADDBACBDB
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1a)
Partnership deed can be defined as a document that is drawn up by the partners of a business which contains the rules and regulations guiding the business.
1bi)
General partnership
ii)Limited partnership
iii)Limited liability partnership.
(1c)
(i) Duties of each partner
(ii) The nature of business
(iii) Amount of salary to be paid to each partner.
(iv) Method to be adopted in admission of a new partner.
(v) How to dissolve the partnership.
(vi) Address of the registered office.
(vii) Partnership account procedures
(viii) The terms and conditions of the partnership.
(ix) The profit and loss sharing ratio.
(x) Rate of interest on drawings.
This is 2024 WAEC GCE Second Series FINANCIAL ACCOUNTING ANSWERS No. 1
3a)
Manufacturing account is prepared to find out the cost of goods sold which includes direct expenses and it deals with raw materials and work in progress and not the finished goods.
3b)
i) To determine manufacturing costs of finished goods
ii) It helps in improving the cost-effectiveness of manufacturing activities.
iii) The costs of finished goods are then transferred from this Account to Trading Account.
(3c)
(i)The firm can make some year-end changes to their financial statements, to improve their ratios. Then the ratios end up being nothing but window dressing.
(ii)accounting ratios do not resolve any financial problems of the company. They are a means to the end, not the actual solution.
(iii)Accounting ratios completely ignore the qualitative aspects of the firm. They only take into consideration the monetary aspects (quantitative)
This is 2024 WAEC GCE Second Series FINANCIAL ACCOUNTING ANSWERS No. 3
(4a)
(i) National security and defence
(ii) Grants and aids
(iii) Interest on loans.
(4b)
(i) Prepaid expenses: The prepaid portion of the expense (unexpired) is reduced from the total expense in the profit & loss account. The prepaid expense is shown on the assets side of the balance sheet under the head “Current Assets”.
(ii) Accrued expenses: The expense is recorded in the accounting period in which it is incurred. Since accrued expenses represent a company’s obligation to make future cash payments, they are shown on a company’s balance sheet as current liabilities.
(4c)
(i) Capital expenses are incurred for the long-term while Revenue expenses are incurred for a shorter-duration and are mostly limited to an accounting year.
(ii) Capital expenses are capitalized while Revenue expenses are not capitalized.
(iii) Depreciation of assets is charged on 'copied from e x p o c o d e . n e t free' capital expenses while Depreciation of assets is not levied on revenue expenditure.
(iv) Capital expenses are borne by a company to boost its earning capacity while Revenue expenses is mostly limited to the current accounting period.
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