WAEC Accounting 2025 Theory Past Questions

Model answer

Young Stars Social Club | Profit Making Organization Surplus | Net profit Accumulated fund | Capital Receipts and payment account | Cash book Deficit | Loss Income and expenditure account | Profit and loss account

Model answer

No. | Social Club's Account | Limited Liability Company's Account 1 | Capital is called the Accumulated Fund | Capital is called Shareholders' Fund 2 | Prepares a Statement of Affairs | Prepares a Balance Sheet 3 | Has no Appropriation Account | Has a Profit and Loss Appropriation Account 4 | Uses a Receipts and Payments Account for cash | Uses a Cash Book for cash 5 | Excess of income over expenditure is called Surplus (or Deficit) | Excess of income over expenditure is called Profit (or Loss)

Model answer

Party | No. | Use of the invoice Seller | 1 | Reveals the details of the buyer Seller | 2 | Used to compute total sales for the period Seller | 3 | Enables the seller to know the eligible discount to give the buyer Buyer | 1 | Used to compute total purchases Buyer | 2 | Reveals the details of the seller Buyer | 3 | Useful for stock valuation

Model answer

No. | Advantage 1 | Makes it easy for an accountant to know the class a transaction belongs to 2 | Eases the preparation of final accounts 3 | Makes it easy to trace errors and frauds

Model answer

No. | Private Sector Account | Public Sector Account 1 | Prepared on the basis of Statement of Accounting Standards (SAS) | Prepared based on the constitution and other public sector laws 2 | Prepared on accrual basis | Prepared on cash basis 3 | Warrant number not applicable | Each transaction must show its warrant number 4 | Makes provision for depreciation on assets | Provision for depreciation is not applicable 5 | Prepares cash book, journals, trading, P&L, manufacturing & appropriation accounts | Prepares mainly income and expenditure accounts

Model answer

Item | Meaning | Debit | Credit (a) Increase in provision for doubtful debts | Amount set aside for unrecoverable debts has increased (additional expense) | Profit and Loss Account | Provision for Doubtful Debts Account (b) Decrease in provision for doubtful debts | Amount set aside for unrecoverable debts has decreased (additional income) | Provision for Doubtful Debts Account | Profit and Loss Account (c) Provision for discount on debtors | Discount likely to be allowed to debtors who pay promptly | Provision for Discount Allowed Account | Debtors Account (d) Provision for discount on creditors | Discount expected to be received from suppliers for prompt payment | Creditors Account | Provision for Discount Received Account (e) Provision for depreciation | Amount set aside for wear and tear of a fixed asset | Provision for Depreciation Account | Fixed Asset remains at cost; depreciation charged to P&L

Model answer

Workings | Calculation | Result (N) 1. Annual depreciation - LMN | 1,200,000 x 20% | 240,000 2. Annual depreciation - AA | 620,000 x 20% | 124,000 Dep. for 1/7/2019-31/12/2019 (6/12) | 124,000 x 6/12 | 62,000 3. Annual depreciation - ABC | 1,350,000 x 20% | 270,000 Dep. for 1/3/2020-31/12/2020 (10/12) | 270,000 x 10/12 | 225,000 (a) Motor Vehicle Account Year | Debit side | N | Credit side | N 2019 | 1/1/2019 LMN 1,200,000; 30/6/2019 AA 620,000 | 1,820,000 | Balance c/d | 1,820,000 2020 | Balance b/d 1,820,000; 1/3/2020 ABC 1,350,000 | 3,170,000 | Balance c/d | 3,170,000 2021 | Balance b/d | 3,170,000 | Balance c/d | 3,170,000 2022 | Balance b/d | 3,170,000 | Balance c/d | 3,170,000 (b) Provision for Depreciation Account Year | Debit side | N | Credit side (P&L depreciation charge) | N 2019 | Balance c/d | 302,000 | LMN 240,000 + AA 62,000 | 302,000 2020 | Balance c/d | 891,000 | B/d 302,000 + LMN 240,000 + AA 124,000 + ABC 225,000 | 891,000 2021 | Balance c/d | 1,525,000 | B/d 891,000 + LMN 240,000 + AA 124,000 + ABC 270,000 | 1,525,000 2022 | Balance c/d | 2,159,000 | B/d 1,525,000 + LMN 240,000 + AA 124,000 + ABC 270,000 | 2,159,000 (c) Profit and Loss Account (extract) - Depreciation charge for the year Year | LMN (N) | AA (N) | ABC (N) | Total depreciation (N) 2019 | 240000 | 62000 | - | 302000 2020 | 240000 | 124000 | 225000 | 589000 2021 | 240000 | 124000 | 270000 | 634000 2022 | 240000 | 124000 | 270000 | 634000 (d) Balance Sheet (extract) - Cost, Accumulated Depreciation and Net Book Value Year | Vehicle | Cost (N) | Accum. Dep. (N) | NBV (N) 2019 | LMN | 1200000 | 240000 | 960000 2019 | AA | 620000 | 62000 | 558000 2019 | Total | 1820000 | 302000 | 1518000 2020 | LMN | 1200000 | 480000 | 720000 2020 | AA | 620000 | 186000 | 434000 2020 | ABC | 1350000 | 225000 | 1125000 2020 | Total | 3170000 | 891000 | 2279000 2021 | LMN | 1200000 | 720000 | 480000 2021 | AA | 620000 | 310000 | 310000 2021 | ABC | 1350000 | 495000 | 855000 2021 | Total | 3170000 | 1525000 | 1645000 2022 | LMN | 1200000 | 960000 | 240000 2022 | AA | 620000 | 434000 | 186000 2022 | ABC | 1350000 | 765000 | 585000 2022 | Total | 3170000 | 2159000 | 1011000

Model answer

Item | $ Raw materials 1/1/2022 | 55680 Add: Purchase of raw materials | 197520 Raw materials available for use | 253200 Less: Raw materials 31/12/2022 | -46420 Raw materials used | 206780 Add direct expenses: Factory power | 2120 Add direct expenses: Factory wages | 157000 Prime cost | 361660 Add factory overhead: Factory light (indirect) | 680 Add factory overhead: Factory rent and rates (indirect) | 16800 Cost of production | 379140 Add: Finished goods 1/1/2022 | 65740 Cost of goods available for sale | 444880 Less: Finished goods 31/12/2022 | -58900 Cost of goods sold | 385980 Sales | 494000 Gross profit (Sales - Cost of goods sold) | 108020 Less: Sales expenses | -170000 Less: General expenses | -35720 Net loss for the year | -97700 Note: Capital ($170,000) is a balance sheet item and does not enter this trading/P&L account.

Model answer

There is no net profit - the business made a Net Loss of $97,700 for the year, so a net profit margin (which requires a positive net profit) cannot be computed.

Model answer

Item | $ Opening finished goods stock | 65740 Closing finished goods stock | 58900 Average stock = (65,740+58,900)/2 | 62320 Cost of goods sold | 385980 Stock turnover ratio = 385,980 / 62,320 | 6.19 times

Model answer

Debit side | Le | Credit side | Le Balance b/d | 63950 | VAT charges | 500 Direct transfer | 20000 | Balance c/d | 83450 Total | 83950 | Total | 83950

Model answer

Item | Le Balance as per adjusted cash book | 83450 Add: unpresented cheque (Bala) | 20320 Balance as per bank statement | 103770 Note: Some individual cash-book/bank-statement entry amounts in the original scan were only partly legible; the reconciling figures above follow the printed working.

Model answer

Debit side | N | Credit side | N Purchase consideration | 1125000 | Premises | 375000 Equipment | 225000 Furniture | 45000 Stock | 240000 Debtors | 135000 Loss from purchase of business | 105000 Total | 1125000 | Total | 1125000

Model answer

Section | Item | N | N Fixed assets | Premises | 735000 Fixed assets | Equipment | 300000 Fixed assets | Furniture | 69000 Fixed assets | Total fixed assets | 1104000 Current assets | Stock | 420000 Current assets | Debtors | 172500 Current assets | Prepayment | 16500 Current assets | Bank | 6000 Current assets | Total current assets | 615000 Current liabilities | Creditors | 97500 Current liabilities | Accruals | 22500 Current liabilities | Total current liabilities (net of 120,000 set-off) | (120000) Net assets | Working capital | 495000 Net assets | Total net assets | 1599000 Financed by | Share capital | 1500000 Financed by | Less: Loss from purchase of business | (105000) Financed by | 1395000 Financed by | Loan | 204000 Financed by | Total capital employed | 1599000

Model answer

Debit side | D | Credit side | D Stock 1/1/2022 | 72200 | Goods returned to head office | 3140 Goods received from head office | 240490 | Cash sales | 268820 Credit sales (per working) | 102200 | Stock 31/12/2022 | 40730 Total | 312,690 (approx.) | Total | 312,690 (approx.) Note: (a) Branch Stock Account shown above at selling price. (b) Goods Sent to Branch Account, (c) Branch Debtors Account and (d) Branch Adjustment Account use the same underlying figures - goods sent to branch recorded at cost plus the 25% mark-up (loading transferred to the Branch Adjustment/Provision for Unrealised Profit Account); Branch Debtors Account tracks opening debtors + credit sales - cash received - discount allowed = closing debtors; Branch Adjustment Account reconciles the mark-up on opening/closing stock and goods sent/returned, with the balance representing the branch's gross profit transferred to the Head Office Profit and Loss Account. Full step-by-step figures for (b)-(d) were not fully legible in the source scan.