WAEC Accounting Past Questions & Answers - Page 123

611.

Motor car costing N10,000 was depreciated at 20 per cent anuum by the diminishing balance method. Two years late, it was sold for N6,000. The net result of the sale was

A.

N6,400 profit

B.

N6,000 loss

C.

N4,000 loss

D.

N400 profit

E.

N400 loss

Correct answer is E

No explanation has been provided for this answer.

612.

The straight-line depreciation is

A.

A fixed sum set aside for the replacement of the asset

B.

A fixed percentage of the balance of the asset at the end of the year

C.

An estimated amount each year

D.

An increase in the value of the asset

E.

A fixed percentage of the cost of the asset written off each year

Correct answer is E

No explanation has been provided for this answer.

613.

When precision for depreciation account is maintained, the annual charge for depreciation shall be

A.

Debited to the provision account and credited to profit and loss account

B.

Debited to the asset account and credited to profit and loss account

C.

Debited to profit and loss account and credited provision account

D.

Debited to the asset account and credited to the provision account

E.

Debited to the provision account and credited to the asser account

Correct answer is C

No explanation has been provided for this answer.

614.

What are the entries of posting credit purchases into the purchases ledger control account?

A.

Debt purchases ledger control account only

B.

Debit both purchases account and purchases ledger control account

C.

Credit purchases acount, debit purcases ledger control account

D.

Credit both purchases ledger control account and the purchases account

E.

Debit purchases account, credit purchases ladger control account

Correct answer is E

No explanation has been provided for this answer.

615.

The balance of the sales account is transferred to the trading account by

A.

Debiting the profit and loss account

B.

Debiting the trading account

C.

Debiting the sales account

D.

Crediting the profit and loss account

E.

Crediting the sales account

Correct answer is C

No explanation has been provided for this answer.