Waec Model Questions Vol1 2023 Financial Accounting Question 3

Practice essay / theory question 3 from the 2023 Waec Model Questions Vol1 Financial Accounting examination. This question covers Books of Original Entry, Journalising, Posting to Ledger, Trial Balance .

Waec Model Questions Vol1 2023 Financial Accounting Essay / Theory
Topics: Books of Original Entry Journalising Posting to Ledger Trial Balance
Question 3 WAEC_MODEL_QUESTIONS_VOL1 • 2023 • FINANCIAL_ACCOUNTING • essay

A sole‑proprietor trading business, Adeola Traders, kept the following information for the month of June: 1. Purchased goods on credit from Alpha Suppliers for ₦450,000; freight charges of ₦12,000 were paid in cash. 2. Sold goods on credit to customers for ₦620,000; the cost of the goods sold was ₦380,000. 3. Paid cash rent for the shop premises ₦45,000. 4. Received cash from customers amounting to ₦300,000. 5. Paid cash to Alpha Suppliers ₦200,000. 6. At the end of June, the physical stock count showed closing stock of ₦95,000. The opening stock at 1 June was ₦80,000. 7. The owner withdrew cash for personal use amounting to ₦25,000. Using the above information, answer the following questions:

Question Parts

( a )
Record the appropriate journal entries for each of the seven items above. State the date as 1 June for the opening stock and 30 June for the closing stock.
( b )
Post the journal entries in part (a) to the relevant ledger accounts (show T‑accounts for Purchases, Freight‑in, Sales, Cost of Goods Sold, Debtors, Creditors, Cash, Rent Expense, Closing Stock and Drawings). State the balance carried down for each account.
( c )
Prepare a trial balance as at 30 June using the balances obtained in part (b). State whether the trial balance balances and, if not, suggest a possible reason for the imbalance.

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About This Question

This is Waec Model Questions Vol1 2023 Financial Accounting Question 3. It is one of the essay questions from the 2023 Waec Model Questions Vol1 Financial Accounting examination.

The question covers Books of Original Entry, Journalising, Posting to Ledger, Trial Balance .

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