WAEC Book Keeping 2025 Theory Past Questions

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2025

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i. The General Ledger - central repository of all financial transactions ii. The Sales Ledger - records all sales/receivables transactions iii. The Purchases Ledger - records all purchases/payables transactions iv. The Cash Book - functions as both a journal and ledger for cash and bank transactions

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i. Enhanced financial accuracy through meticulous record-keeping ii. Improved financial planning and budgeting/forecasting iii. Regulatory compliance, reducing risk of penalties

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i. Expenditure control - a fixed float limits how much petty cash can be spent ii. Simplified accounting - only the exact amount spent needs reimbursing/recording each period

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i. Nature: cash column records physical cash transactions; bank column records cheque/bank transactions ii. Frequency: cash transactions are more frequent and smaller; bank transactions are larger and less frequent iii. Reconciliation: cash column is reconciled with physical cash on hand; bank column is reconciled with bank statements

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A financial statement that shows the assets, liabilities and capital of a business at a specific point in time (a 'snapshot' of financial position).

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i. Dual aspect - every transaction affects at least two accounts ii. Snapshot in time - reflects position on a specific date, not a period iii. Classification - items are grouped into assets, liabilities and capital

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Decreases bank balance (asset) and increases inventory/stock (asset) - total assets unchanged.

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Decreases bank balance (asset) and decreases creditors/accounts payable (liability) equally.

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Increases bank balance (asset) and increases owner's capital (equity).

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Increases non-current assets (motor vehicle) and increases liabilities (creditor for the vehicle).

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Decreases bank/cash balance (asset) and decreases owner's capital (equity) via drawings.

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The gradual and permanent reduction in the value of a tangible fixed asset over its useful life, usually charged as an expense in the profit and loss account.

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i. Physical wear and tear from regular use ii. Obsolescence due to technological advancement iii. Legal or contractual time limits (e.g. leases) iv. Passage of time (effluxion of time)

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Scrap (salvage) value: the estimated residual/disposal value of an asset at the end of its useful life. Estimated useful life: the period over which an asset is expected to be economically usable/productive to the business.

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Column totals for October 2020: Travelling N600 | Postage & Stationery N1,050 | Motor Expenses N2,800 | Cleaning N300 | Ledger Accounts N4,600. At month end the cashier is reimbursed the total amount spent, restoring the imprest float back to N10,000.

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See Sales Ledger Control Account table below - closing balance c/d N33,070.

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See Purchases Ledger Control Account table below - closing balance c/d N135,190.

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See individual Ledger Accounts (Cash, Bank, Capital, Loan, Purchases, Rent, Sales, Furniture, Salaries) and the final Trial Balance table below - Trial Balance totals N825,000 = N825,000.

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Q8(a) Sales Ledger Control Account

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Q8(b) Purchases Ledger Control Account

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Q9 Trial Balance as at 31st July 2020 (Mufutau)