WAEC 2024 BOOK KEEPING ANSWERS

BOOK KEEPING ANSWERS

OBJ!
01-10: ABCDCBCCDC
11-20: BCAAADCDBA
21-30: CBCDCACBDB
31-40: CCABAAABDC

COMPLETED

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(1a)
(i) Does not guarantee accuracy: A trial balance only ensures that the debits and credits are equal, but does not detect errors like incorrect postings, omissions, or calculations.

(ii) Limited scope: A trial balance only provides a snapshot of the accounts at a specific point in time and does not reveal detailed information about transactions or account activities.

(1b)
(PICK ANY 3)

(i) Recording transactions: A ledger is used to record and classify transactions into different accounts.

(ii) Maintaining account balances: A ledger helps to keep track of the current balance of each account.

(iii) Preparing financial statements: Ledger accounts are used to prepare financial statements like balance sheets and income statements.

(iv) Identifying errors: Ledgers help to detect errors and discrepancies in accounting records.

(v) Providing detailed information: Ledgers offer a detailed and chronological record of transactions and account activities.

(vi) Facilitating internal control: Ledgers help to implement internal control measures like authorization, verification, and reconciliation, which help to prevent fraud and errors.
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(2a)
The capital of Bimpe Enterprises is ₦2,000,000, which is the initial investment by Bimpe to start the business.

(2b)
The financial year for Bimpe Enterprises is January 1, 2020, to December 31, 2020, since the business started on January 1, 2020.

(2c)
(i) Rent
(ii) Cost of goods purchased (unknown amount, but it would be the cost of cosmetics bought for resale)

(2d)
The cabinet bought by Bimpe Enterprises would be subject to depreciation, as it is a non-current asset (also known as a fixed asset) that will be used over its useful life, which is typically more than one year.
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(3)
(PICK ANY 5)

(i) Job Creation: Entrepreneurs create jobs not only for themselves but also for others, reducing unemployment rates and increasing economic activity.

(ii) Innovation: Entrepreneurs introduce new products, services, and processes, driving innovation and competitiveness, which can lead to economic growth.

(iii) Economic Growth: Entrepreneurs contribute to GDP through their businesses, generating revenue and stimulating economic expansion.

(iv) Increased Productivity: Entrepreneurs often find more efficient ways to produce goods and services, leading to increased productivity and competitiveness.

(v) Reduced Dependence on Foreign Aid: By promoting entrepreneurship, the government can reduce the country’s dependence on foreign aid and promote self-sufficiency, leading to economic independence and stability.

(vi) Improved Standard of Living: Entrepreneurs create wealth, which can lead to improved standards of living, better healthcare, education, and infrastructure.

(vii) Increased Tax Revenue: Entrepreneurs and their businesses generate tax revenue, which can be used to fund public services and infrastructure projects.

(viii) Reduced Poverty: Entrepreneurship can help reduce poverty by creating jobs and income opportunities, especially in underserved communities.

(ix) Encourages Risk-Taking: Entrepreneurship encourages risk-taking, which can lead to new discoveries, innovations, and economic breakthroughs.

(x) Fosters Competition: Entrepreneurship fosters competition, which can lead to better products, services, and prices, benefiting consumers and driving economic growth.
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(4)
(a) Drawings:
Drawings represent the amount of money or assets withdrawn by the sole proprietor from the business for personal use. In the balance sheet, drawings are treated as a reduction in the proprietor’s capital account, and are subtracted from the total capital to show the net capital invested in the business.

(b) Creditors:
Creditors represent the amount of money owed by the business to its suppliers or vendors for goods or services purchased on credit. In the balance sheet, creditors are treated as a current liability, and are shown under the heading “Current Liabilities” or “Accounts Payable”.

(c) Debtors:
Debtors represent the amount of money owed to the business by its customers for goods or services sold on credit. In the balance sheet, debtors are treated as a current asset, and are shown under the heading “Current Assets” or “Accounts Receivable”.

(d) Accruals:
Accruals represent expenses incurred by the business but not yet paid or recorded. In the balance sheet, accruals are treated as a current liability, and are shown under the heading “Current Liabilities” or “Accrued Expenses”.

(e) Stock:
Stock represents the goods or materials held by the business for sale or use in production. In the balance sheet, stock is treated as a current asset, and is shown under the heading “Current Assets” or “Inventory”.
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(6)