WAEC Book Keeping 2024 Theory — Question 2
Question 2 of 7 from the West African Examinations Council (WAEC) Book Keeping 2024 Theory paper, with the correct answer and a full explanation.
Advertisement
2. Bimpe Enterprises started business on 1st January 2020 as a dealer in cosmetics with #2,000,000. She paid two years rent of #300,000 for her shop and bought goods and a cabinet. (a) What is the capital of Bimpe enterprises? (b) What is the financial year for Bimpe Enterprises? (c) List two items of expenditure for end of year adjustment. (d) Which item of expenditure would be subject to depreciation?
Model answer
(a) The capital of Bimpe Enterprises is #2,000,000. (b) The financial year for Bimpe Enterprises is 1st January - 31st December, 2020. (c) Items of expenditure for end of year adjustment: Rent; Depreciation of cabinet. (d) The Cabinet would be subject to depreciation.
Advertisement
Sign up free to unlock
- Score tracking
- Practice history
- Saved questions
- Progress dashboard
- Personalized sessions
- Weak-topic breakdown
…and/or go further with premium services and No Ads.