WAEC GCE Financial Accounting 2017 | Past Questions & Answers Expo (Theory/Essay/OBJ)
Recently, these are Financial Accounting Past Questions & Answers written some years ago. The main purpose of giving out these past questions on Financial Account is to help prepare students who has registered for the WAEC GCE exam.
Furthermore, this answers are not expo answers. As a matter of fact, it is for serious minded people only.
Question 1
Theory of Financial Accounting
Explain the following:
- imprest system;
- petty cash book;
- memorandum entries;
- three-column cash book;
- journal proper.
Observation
At least, seventy percent of the candidates who attempted the question did well in it. However, few candidates could not answer questions 1(c) and 1(e). The expected answer includes:
- Memorandum Entries: - These are entries which do not form part of the double entries.
- Journal proper:- This is a subsidiary book into which all other transactions that cannot be entered into other subsidiary books are recorded.
Question 2
Explain Control Accounts.
State seven items that will appear on the debit side of purchases ledger control account.
State four sources for compiling purchases ledger control account.
Observation
Majority of the candidates who attempted this question performed very well.
Question 3
(i) What is depreciation?
(ii) State three characteristics of depreciable asset.
Explain the following methods of calculating depreciation:
- Straight line;
- Reducing balance;
- Sum of the years digit.
Observation
The general performance of the candidates was very poor. The expected answers were:
(a) (i) Definition of depreciation:
Depreciation is the permanent and continuous decrease in the economic value of fixed assets.
OR
It may also be defined as the systematic and periodic allocation of the historical cost or revalued amount less estimated residual value of a depreciable asset over its estimated useful life.
(ii) Characteristics of a depreciable asset
- It should have useful life of over one year
- It must have been acquired primarily for use in the production of goods or services
- It should have an estimated useful life
- It should not be intended for sale in the ordinary course of the business
- It may have a scrap value.
- It must have an original cost
- It must have net book value.
(b) Methods of calculating depreciation
Straight line method: Under this method, the cost less scrap value of a fixed tangible asset is allocated equally over the years of useful life.
Reducing Balance method: Under this method, depreciation is calculated per annum at a fixed percentage rate on the net book value of the fixed asset.
Sum of the year's digit method: This is the method where the digits of the numbers making up the economic life span of the fixed asset are added and used as a proportion for determining the annual charge for depreciation.
Question 4
What is data processing?
Identify three stages of data processing
State three advantages and two disadvantage of a computer
Observation
The candidates who attempted this question did very well.
Question 5
Financial Accounting Practice
Observation
This question required candidates' to prepare the Manufacturing, Trading, Profit and Loss Account.
Majority of the candidates attempted this question and performed very well.
Question 6
Financial Accounting Practice
Observation
This question required candidates to prepare:
- Branch Stock Account;
- Goods Sent to Branch Account;
- Branch Debtors Account
- Branch Adjustment Account
The question was poorly attempted by few candidates and the failure rate was.high. Candidates had no good knowledge of the account. Teachers should devote extra time for the teaching of the branch account.
Question 7
Financial Accounting Practice
Observation
In this question, candidates were required to prepare:
Revaluation Account;
- Partners Current Accounts in columnar forms;
- Opening Balance Sheet for each partners.
Candidates' performance was very poor. The failure rate was high and it shows that candidates do not understand 'Revaluation Account'.
Question 8
Financial Accounting Practice
Observation
In this question, candidates' were required to prepare:
- Trading, Profit and Loss Account.
- Balance Sheet.
The general performance of candidates in this question was impressive.
Question 9
Financial Accounting Practice
Observation
In this question, candidates were required to prepare Petty Cash Book.
Majority of the candidates attempted this question and performed well.
General Comments
The standard of the paper was the same as in the previous years. The questions were suitable, straight-forward and within candidates reach.
The general performance of the candidates was very good.
Candidates Strength
The candidates performed very well in questions testing the following topics:
Control Account Data Processing Manufacturing Account Trading Profit and Loss Account Petty Cash Book
Candidates Weakness
Some of the weaknesses observed were:
candidates' inability to answer question on Branch Account, inability to explain some accounting concepts and terminologies, inadequate preparation for the examination, non-coverage of syllabus before registering for the examination.
SUGGESTED REMEDIES
Teachers should not neglect branch accounting as it is part of the syllabus and it must be taught. The teaching of accounting concepts and terminology must be emphasized in schools. Candidates should prepare very well by covering all aspects of the syllabus.