WAEC Accounting 2020 Objective — Question 36
Question 36 of 50 from the West African Examinations Council (WAEC) Accounting 2020 Objective paper, with the correct answer and a full explanation.
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The Salaries that would be charged to Profit and Loss Account for the year 2017 is (Using the Cash Book of Ogidigbi Enterprises: Balance b/f GH¢127,000, Amount received from debtors GH¢409,000, Salaries GH¢142,000, Electricity GH¢238,000, Stationery GH¢126,000, Balance c/d GH¢30,000. Salaries owing at 01/01/2017: GH¢40,000, at 31/12/2017: GH¢55,000. Electricity prepaid at 01/01/2017: GH¢58,000, at 31/12/2017: GH¢60,000. Stationery outstanding at 01/01/2017: GH¢49,000, at 31/12/2017: GH¢36,000.)
- A. GH¢ 197,000
- B. GH¢ 157,000Correct
- C. GH¢ 142,000
- D. GH¢ 127,000
Explanation
Salaries charged for the year = Cash paid GH¢(142,000-40,000+55,000) = GH¢157,000 (adjusting the cash paid figure for the opening amount owing which is deducted, and the closing amount owing which is added).
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