Waec Model Questions Vol1 2024 Financial Accounting Question 3

Alpha Ltd. is a manufacturing company that uses the calendar year as its financial year. The following transactions occurred during the year ended 31 December: 1. 1 January – Purchased machinery for ₦1,200,000 cash. 2. 5 January – Bought raw materials on credit, ₦350,000. 3. 10 January – Sold finished goods for ₦800,000 cash; cost of goods sold was ₦500,000. 4. 15 February – Paid salaries amounting to ₦120,000. 5. 20 March – Received ₦200,000 from a customer on account. 6. 30 June – Paid rent of ₦60,000 for the six‑month period June‑December. 7. 31 July – Declared and paid a dividend of ₦50,000. 8. 31 August – Purchased a delivery van for ₦300,000 on credit. 9. 15 September – Received a loan of ₦500,000 from a bank, interest payable annually at 10%. 10. 31 December – Purchased office supplies for ₦30,000 cash. The company follows the accrual basis of accounting. Prepare the required accounting work as instructed in the sub‑questions.