WAEC Past Questions and Answers - Page 1294

6,466.

Where a wrong figure occurs in only one account with the second figure correctly stated, this is an error of

A.

Transposition

B.

Compensation

C.

Omission

D.

Commission

Correct answer is A

A transposition error is a data entry error that occurs when two digits are accidentally reversed. It is where a bookkeeper accidentally reverses two adjacent digits, when recording transactional data.

6,469.

 

Use the following information to answer the question given


\(\begin{array}{c|c} \text{Jan. 1} & \text{₦}\\ \hline \text{1/1/08 Capital introduced by cash} & 50,000 \\ \text{2/1/08 Bought goods for retail by cash} & 10,000\\ \text{3/1/08 Sold fixtures by cash} & 5,000\\ \text{4/1/08 Sold goods to Lagbaja on credit} & 3,000\\ \text{5/1/08 Bought goods on credit from Tamedu}& 8,000\end{array}\)

Cash balance at 5/1/08 is

A.

₦50,000

B.

₦40,000

C.

₦45,000

D.

₦30,000

Correct answer is C

The amount of money in an account. It is calculated by adding the initial deposit to all subsequent deposits and then subtracting all disbursements.

capital introduced   50000  
purchase                                10000
sales                       5000     
Bal c/d                                    45000   
                               55000      55000

cash balance = 45000

6,470.

Which of the following is not found in a trial balance?

A.

Opening stock

B.

Closing stock

C.

Capital

D.

Rent paid

Correct answer is B

Closing stock is the leftover balance out of goods which were purchased during an accounting period. Total purchases are already included in the trial balance, Hence closing stock should not be included in the trial balance again. If it is included, the effect will be doubled.