2019 WAEC ACCOUNT OBJ AND THEORY QUESTIONS AND ANSWERS
FINANCIAL ACCOUNT OBJ
COMPLETED AND VERIFIED✅✅✅
(2a)Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts to permanent accounts.
(i)Branches are separated from the main organization while Department are attached with the main organization under a single roof
(ii)Branches are geographically separated while Department are not separated rather exist under the same roof
(iii)Allocation of branch common expenses does not arise while allocation of departmental common expenses is a tough job
(i)It enables the organization to determine the branch that is making either profit or loss
(ii)It helps to determine the performance of the organization as a whole
(iii)It allows proper control over the branch by the head office
(iv)it also assists the organization to determine the performance of a branch manager
(v)it prevent wastage and fraud from the staff
Answer to number 4
- Insufficient Funds
Salaries sometimes reach late in accounts leaving insufficient funds in your account which may lead to bouncing of cheque. While writing a cheque, make sure that you have sufficient funds in your bank account.
- Irregular Signature
Bank will not honour a cheque if the signature of the drawer on the cheque don’t match the specimen signature available with the bank.
Alterations on cheques are not allowed. Even if you sign the alteration to verify it, the cheque will not be considered as valid and will not be honoured by the bank.
- Post-dated Cheque
A post-dated cheque is the one on which the date which is mentioned is yet to come. Post-dated cheques are to be presented to the banks on a future date. For instance, a cheque written on 15th Jan 2016 bearing a date of 30th Jan 2016, is a post-dated cheque. A cheque will be dishonoured if it is presented to the bank before the date mentioned on it.
- Stale Cheque
If a cheque is presented to the bank for payment after three months from the date mentioned on the cheque it is called stale cheque. After expiry of that period, the cheque will be dishounoured and no payment will be made by banks against that cheque.
- When Payment Is Stopped
If the drawer asks the bank to stop payment and not to pay for a cheque already issued, in that case, the cheque will not be honoured by the bank.
- Frozen Account
If government or court has ordered that a person’s account has to be frozen, in such case, the bank will dishonour all the cheques bearing that account number.
4b(ii) contra entries occur when a supplier is also a customer. The firm can sell on credit to a customer and buy on credit from the same person. The inter-indebtedness will be set -off against each other. At the end Of The month the smaller of the Two Balances will be set off against the larger balance
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