Waec Model Questions Vol1 2017 Financial Accounting Question 4

Practice essay / theory question 4 from the 2017 Waec Model Questions Vol1 Financial Accounting examination. This question covers Ledger Accounts .

Waec Model Questions Vol1 2017 Financial Accounting Essay / Theory
Topic: Ledger Accounts
Question 4 WAEC_MODEL_QUESTIONS_VOL1 • 2017 • FINANCIAL_ACCOUNTING • essay

The following trial balance was prepared for Greenfield Enterprises at the end of the fiscal year. All figures are in Naira. | Account | Debit (₦) | Credit (₦) | |-----------------------|-----------|------------| | Cash | 70,000 | | | Purchases | 120,000 | | | Rent Expense | 30,000 | | | Advertising Expense | 30,000 | | | Sales Revenue | | 180,000 | | Owner’s Capital | | 50,000 | | Accounts Payable | | 10,000 | | **Totals** | 250,000 | 240,000 | Using the above trial balance, answer the questions that follow.

Question Parts

( a )
Post the balances to the respective ledger accounts and prepare T‑accounts for Cash, Purchases, Sales Revenue and Rent Expense. Show the closing balance of each of these four accounts.
( b )
From the ledger information, prepare a Statement of Profit or Loss for the period. State the Gross Profit and the Net Profit (or Net Loss).
( c )
The total of debit balances in the trial balance is ₦250,000 while the total of credit balances is ₦240,000. Discuss possible reasons for this discrepancy and suggest practical steps the accountant should take to locate and correct the error.

Detailed Solution & Marking Scheme

Get the step-by-step solution, key points required by examiners and detailed marking guidance through the Edcrib AI Tutor.

Reveal Answer

About This Question

This is Waec Model Questions Vol1 2017 Financial Accounting Question 4. It is one of the essay questions from the 2017 Waec Model Questions Vol1 Financial Accounting examination.

The question covers Ledger Accounts .

View More Waec Model Questions Vol1 2017 Financial Accounting Questions More Waec Model Questions Vol1 Practice Questions Back to Questions

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Chat with Support