*WAEC BOOKKEEPING BY MR.CODED-OF-CODEDFANS.COM.NG*

*NUMBER ONE*

(1a)
(PICK ANY TWO)
(i) Balancing of Accounts: A trial balance only ensures that the total of the debit balances is equal to the total of the credit balances. However, it does not ensure the accuracy of the individual account balances.
(ii) Detection of Errors: A trial balance may not detect certain types of errors, such as errors of omission, errors of commission, or errors of principle. These errors may not affect the equality of the debit and credit totals.
(iii) Identification of Fraud: A trial balance does not guarantee the detection of fraud. Fraudulent transactions can be recorded in a way that maintains the equality of the debit and credit totals.
(iv) Lack of Adjustments: A trial balance does not include any adjustments that may be necessary, such as accruals, prepayments, or depreciation. These adjustments must be made separately to ensure the accuracy of the financial statements.

https://codedfans.com.ng

(1b)
(PICK ANY THREE)
(i) Recording Transactions: The ledger is the primary record of all the business transactions, providing a detailed and organized account of the financial activities of the business.
(ii) Account Balances: The ledger allows for the easy identification of the current balance of any account, which is essential for making informed business decisions.
(iii) Financial Statements Preparation: The information in the ledger is used to prepare the financial statements, such as the income statement, balance sheet, and cash flow statement.
(iv) Audit Trail: The ledger provides a comprehensive audit trail, allowing auditors to verify the accuracy and completeness of the financial records.
(v) Management Reporting: The data in the ledger can be used to generate various management reports, such as sales reports, expense reports, and cash flow statements, which are essential for decision-making.

https://codedfans.com.ng

(4)
(a) Drawings are the owner’s withdrawals for personal use and are subtracted from the owner’s equity because they reduce the capital invested in the business.

(b) Creditors are amounts the business owes to suppliers for goods or services received but not yet paid for. They are listed under current liabilities.

(c) Debtors are customers who owe the business money for goods or services provided on credit. They are listed under current assets.

(d) Accruals are expenses that have been incurred but not yet paid for, such as wages or utilities, and are listed under current liabilities to indicate money owed by the business.

(e) Stock, or inventory, is the goods available for sale and is listed under current assets, reflecting the value of goods that can be converted into cash as part of the business’s normal operations.

https://codedfans.com.ng