Financial Accounting Waec Answers 2024

*NUMBER 1*

(a)(i) General journal

(ii) Purchases journal

(iii) General journal or bank journal

(iv) Sales returns journal

(b)(i) Purchases journal

(ii) Cash payments journal

(iii) Returns outwards journal

(iv) Discount received journal

(v) Petty cash journal

(c)(i) Sales ledger: Records credit sales, customer accounts, and related transactions.

(ii) Purchases ledger: Records credit purchases, supplier accounts, and related transactions.

(iii) General ledger: Records all other transactions not included in the sales or purchases ledger, including assets, liabilities, capital, income, and expenses.

(2a) :

1.Depreciation: The allocation of the cost of fixed assets over their useful lives.

2.Accruals: Recognizing expenses that have been incurred but not yet paid, or revenues that have been earned but not yet received.

3 Prepayments: Recognizing expenses that have been paid in advance, or revenues that have been received in advance.

4.Bad debts: Writing off debts that are considered uncollectible.

5.Provision for doubtful debts: Creating a reserve to cover potential future bad debts.

6 Stock valuation: Adjusting the value of inventory to reflect its cost or market value, whichever is lower.

(2b)

1.Nature: Capital expenditure is incurred for acquiring or improving fixed assets, which provide long-term benefits to the business. Revenue expenditure is incurred for the day-to-day operations of the business and is typically short-term in nature.

2.Treatment: Capital expenditure is usually capitalized and recorded on the balance sheet as an asset, while revenue expenditure is expensed in the period it is incurred and recorded on the income statement.

3.Impact on profitability: Capital expenditure does not directly affect the profit of the period in which it is incurred but is spread over multiple accounting periods through depreciation. Revenue expenditure directly impacts the profitability of the period in which it is incurred by reducing the net income.

 

_*Question 3*_

(a) Ose likely operates a single-entry bookkeeping system, also known as an incomplete or simple bookkeeping system. In this system, only one record is maintained for each transaction, typically recording cash and personal accounts in a cash book. It is generally less time-consuming and less complex than double-entry bookkeeping.

(b) Advantages:

(I). Simplicity: Single-entry bookkeeping is easy to understand and implement, making it suitable for small businesses with fewer transactions.

(II). Time-saving: As only one record is maintained for each transaction, this system is less time-consuming compared to double-entry bookkeeping.

(III). Cost-effective: The simplicity of the system requires less expertise and can be managed by the business owner, reducing the need for hiring professional accountants.

Disadvantages:

(I). Incomplete records: Since only one aspect of a transaction is recorded, the system does not provide a complete picture of the business’s financial position.

(II). Limited analysis and control: The absence of a full set of financial statements makes it difficult for the owner to analyze and control the business operations effectively.

(III). Difficult to identify errors: With only one entry per transaction, it becomes challenging to trace and rectify errors that may occur in the bookkeeping process.