NECO BOOK KEEPING ANSWERS 2020

(1a)
(i)it is used to prevent fraud
(ii)It is used To detect missing figures
(iii)It saves time,money and labour
(iv)It is used to ascertain the debtors and creditors balance
(v)It is used to locate errors easily

(1b)
Long term liability; these are debt which become due for settlement after more than one year. While Current liability: these are debt due for settlement within one year

(ii)fixed asset: these are long lasting asset which are used for the purpose production while Current Assets: these are held for a short period of time for running the affairs of business

(iii)Intangible Asset: these are asset that cannot be seen nor touch e.g Goodwill Fictitious Assets: these are asset of unusual character and are not realizable .eg preliminary expenses

(2a)
(i)Sales day book: these are books used for recording items sold on credit
(ii)purchase day book: these are books used for recording items bought on credit
(iii)return inward: these are books used for recording items returned by a customer for one reason or the other
(iv)return outward journal: these are books used for recording items returned to supplier for one reason or the other
(v)cash book; this used for recording items that involves immediate payment

(2b)
(i)Personal Account: this is a ledger account that deals with persons, corporate entities with whom the business has transaction E.g union bank PLC Debtors account

(ii)Impersonal Account: this is a ledger account that deals with Assets, liabilities, incomes and expenditure eg Real Account: Buildings Nominal Account: Expenses

(2c)
(i)Loan from financial institutions
(ii)plough back profit
(iii)trade credit
(iv)capital contributed by all partners
(v)Admission of a new partner

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