WAEC Accounting Past Questions & Answers - Page 313

1,561.

The balance in a sales Ledger Counter Account indicates the

A.

Difference between debtors and creditors

B.

Total sales

C.

Total purchases

D.

Total debtors

Correct answer is D

It represents the total balance of credit sales otherwise known as trade debtors

1,562.

Which of the following is added to the proprietor's capital?

A.

Net profit

B.

Gross profit

C.

Net sales

D.

Gross sales

Correct answer is A

Net profit is the actual profit after working expenses not included in the calculation of gross profit have been paid. That is, it is the profit after expenses have been deducted from gross profit. It makes up part of the business capital called plough-back profit. 

1,563.

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.