WAEC 2025/2026 Book Keeping Obj & Theory Answers

BOOK KEEPING OBJ

01-10: BDCDBABACA

11-20: DADABABBAA

21-30: DBCCADBBDD

31-40: CBCAABCDCA

COMPLETED

(1a)

(PICK FOUR ONLY)

(i) Cash book

(ii) Sales day book

(iii) Purchases day book

(iv) General ledger

(v) Debtors ledger

(vi) Creditors ledger

(vii) Journal proper

(viii) Petty cash book

(1b)

(PICK THREE ONLY)

(i) Accurate record keeping: Mr. Adamu would ensure all financial transactions are properly recorded and maintained.

(ii) Financial planning and control: With accurate records, the business can plan and control its finances effectively.

(iii) Preparation of financial statements: He would help in preparing profit and loss accounts and balance sheets.

(iv) Compliance with regulations: Proper bookkeeping ensures the business complies with tax and legal requirements.

(v) Detection and prevention of fraud: Regular and accurate record-keeping can help detect and prevent financial irregularities.

(vi) Informed decision-making: Reliable financial data provided by Mr. Adamu would aid in making sound business decisions.

(2a)

(PICK TWO ONLY)

(i) Control over petty expenses: The imprest system ensures that petty cash is spent only for authorized minor expenses.

(ii) Easy reimbursement: It simplifies the process of reimbursing petty cash to maintain a fixed balance.

(iii) Prevents misuse of funds: The system helps prevent misuse or misappropriation of petty cash by limiting the amount available.

(iv) Enhances accountability: Each disbursement is recorded and backed by a receipt, making the custodian accountable.

(v) Facilitates proper record-keeping: The system enables systematic and accurate recording of all minor expenses for future reference.

(2b)

(PICK THREE ONLY)

(i) Cash column records physical cash transactions, while bank column records transactions done through the bank.

(ii) Cash column shows only cash receipts and payments, while bank column shows bank deposits and withdrawals.

(iii) Cash column cannot show overdraft, while bank column can reflect bank overdraft.

(iv) Cash column always has a debit balance, while bank column can have either a debit or credit balance.

(v) Cash column is affected by cash sales or purchases, while bank column is affected by cheque payments or receipts.

(vi) Cash column is used to track petty cash flow, while bank column is used to track bank account activities.

(vii) Errors in the cash column are corrected in the cash book itself, while errors in the bank column may require a bank reconciliation.

(3a)

A balance sheet is a fundamental financial statement that provides a snapshot of an enterprise’s financial position at a specific point in time.

(3b)

(i)Dual Aspect

(ii)Snapshot in Time

(iii)Classification

(3c)

(i) Bought goods by cheque: This transaction decreases the bank balance (asset) and increases inventory (asset), maintaining the balance.

(ii) Paid creditors by cheque: Reduces both the bank balance (asset) and accounts payable (liability), reflecting a decrease in both assets and liabilities.

(iii) Additional capital introduced by the owner: Increases the bank balance (asset) and owners’ equity, enhancing the financial position.

(iv) Bought motor vehicle on credit: Increases both non-current assets (motor vehicle) and liabilities (accounts payable), maintaining the balance.

(v) Owners withdrew money from the business: Decreases the bank balance (asset) and owners’ equity, reflecting a reduction in financial resources.

(4a)

Depreciation is a critical accounting concept reflecting the gradual reduction in the value of a tangible fixed asset over its useful life.

(4b)

(i)Physical Wear and Tear: Regular use leads to physical deterioration, diminishing the asset’s efficiency and value.

(ii)Obsolescence: Technological advancements can render an asset outdated, reducing its market value.

(iii)Legal or Contractual Limits: Certain assets have legal or contractual usage limits, leading to depreciation as these limits approach.

(iv)Time Passage: Simply the passage of time can depreciate certain assets, even with minimal active use.

(4c)

Scrap Value: The residual value of an asset at the end of its useful life, representing the expected recovery value upon disposal. WHILE Estimated Useful Life: The anticipated duration over which an asset is expected to be economically productive for the enterprise. Understanding these concepts and their implications is essential for effective financial management and strategic planning within any business enterprise.

(5)

(6)

OR

(6)

Error (i): Cash received from Tayo debited to Taye

-Correction: Debit Tayo’s account and credit Taye’s account with N 7,900.

Error (ii): Goods worth N 7,500 posted to suppliers’ account as N 5,700

-Correction: Debit suppliers’ account with N 1,800 (N 7,500 – N 5,700).

Error (iii): Total discount allowed carried forward as N 5,600 instead of N 6,500

-Correction: Debit discount allowed account with N 900 (N 6,500 – N 5,600).

Error (iv): Proceeds from sale of old machine credited to sales account

-Correction: Debit sales account with N 46,700 and credit machinery disposal account (or a suitable account) with N 46,700.

Error (v): Discount allowed credited to discount received account

-Correction: Debit discount received account with N 6,200 and credit discount allowed account with N 6,200.

Error (vi): Bad debt recovered credited to customer’s personal account

-Correction: Debit customer’s account with N 6,500 and credit bad debt recovered account with N 6,500.

(7)

(8)

(9)

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