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WAEC Accounting 2015 Objective — Question 17

Question 17 of 50 from the West African Examinations Council (WAEC) Accounting 2015 Objective paper, with the correct answer and a full explanation.

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Using the extract from a firm's books as at June 30, 2012 (Advertising Dr GH₴36,000; advertising paid by cheque covering 12 monthly instalments from March 1, 2011), the advertising owing in respect of the year ended June 30, 2012 is

  • A. GH₴12,000
  • B. GH₴9,000Correct
  • C. GH₴6,000
  • D. GH₴3,000

Explanation

Advertising per month = GH₴36,000/12 = GH₴3,000. The instalments cover to Feb 2012 (12 months from March 2011), so 3 months (to June 2012) are owing: GH₴3,000×3 = GH₴9,000.

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