Waec Model Questions Vol1 2024 Financial Accounting Question 4

Beta Ltd. is a trading company whose financial year ends on 31 December. The following information pertains to the year ended 31 December: - Opening balances (1 January): * Cash – ₦150,000 (debit) * Bank – ₦200,000 (debit) * Trade Receivables – ₦120,000 (debit) * Inventory – ₦250,000 (debit) * Capital – ₦800,000 (credit) - Transactions during the year: 1. 5 February – Purchased goods on credit for ₦400,000. 2. 12 March – Sold goods for ₦600,000 cash; cost of goods sold was ₦350,000. 3. 20 April – Paid cash for rent amounting to ₦90,000. 4. 15 May – Paid salaries of ₦130,000 by cheque. 5. 30 June – Received ₦80,000 from a customer on account. 6. 10 August – Purchased a delivery van for ₦250,000 cash. 7. 25 September – Paid ₦70,000 to suppliers (trade payables). 8. 5 October – Owner withdrew ₦60,000 as drawings. 9. 20 November – Paid interest on a bank loan of ₦20,000 (interest expense). 10. 31 December – Closing inventory counted at ₦300,000. Assume all purchases are on credit unless otherwise stated and that the company follows the accrual basis of accounting. Answer the sub‑questions below.