2025 WAEC BOOK KEEPING: WAEC Book keeping (BookKeeping) 2026 Legit Questions and Answers (2945)

(1a) 

(PICK FOUR ONLY)

(i) Cash book

(ii) Sales day book

(iii) Purchases day book

(iv) General ledger

(v) Debtors ledger

(vi) Creditors ledger

(vii) Journal proper

(viii) Petty cash book

(1b)

(PICK THREE ONLY) 

(i) Accurate record keeping: Mr. Adamu would ensure all financial transactions are properly recorded and maintained.

(ii) Financial planning and control: With accurate records, the business can plan and control its finances effectively.

(iii) Preparation of financial statements: He would help in preparing profit and loss accounts and balance sheets.

(iv) Compliance with regulations: Proper bookkeeping ensures the business complies with tax and legal requirements.

(v) Detection and prevention of fraud: Regular and accurate record-keeping can help detect and prevent financial irregularities.

(vi) Informed decision-making: Reliable financial data provided by Mr. Adamu would aid in making sound business decisions.

(2a) 

(i) Better control over small expenses: The imprest system helps to monitor and regulate petty cash expenditures, reducing the risk of misuse or misappropriation.

(ii) Easy reimbursement of spent amounts: The system ensures that the petty cash fund is replenished to its original amount when expenses are incurred, making it easier to manage and account for small expenses.

(2b) 

(i) Cash column tracks physical cash, while bank column tracks bank transactions: This distinction is essential for accurate accounting and cash management.

(ii) Cash column includes cash sales/purchases, while bank column includes cheques, transfers, etc.: Understanding the types of transactions recorded in each column helps in preparing accurate financial statements.

(iii) Cash column shows physical cash balance, while bank column shows bank account balance: This difference is crucial for managing cash flow, identifying discrepancies, and preventing overdrafts.

(3a) 

A balance sheet is a financial statement that shows the financial position of a business at a specific point in time. It provides a summary of a company’s assets, liabilities, and owners' equity, helping stakeholders understand what the business owns and owes.

(3b)

(PICK ANY THREE)

(i) It shows the financial position of a business.

(ii) It is prepared at a specific date.

(iii) It contains assets, liabilities, and capital.

(iv) Total assets equal total liabilities plus capital.

(v) It does not record income or expenses.

(3ci) 

Bought goods by cheque: This transaction reduces the bank balance (asset) and increases inventory (asset). The overall effect on the balance sheet is neutral as one asset decreases while another increases.

(3cii) 

Paid creditors by cheque: This reduces both bank balance (asset) and accounts payable (liability). It decreases liabilities and decreases assets by the same amount, keeping the balance sheet balanced.

(3ciii) 

Additional capital introduced by the owner: This increases cash or bank (asset) and increases owner’s equity (capital). It reflects more funds available to the business and a corresponding increase in the owner's stake.

(3civ) 

Bought motor vehicle on credit: This increases fixed assets (motor vehicle) and increases accounts payable (liability). The business 'copied from e x a m p l a z a s . c o m free' acquires an asset and incurs a liability, with no immediate effect on cash.

(3cv) 

Owners withdrew money from the business: This reduces cash or bank balance (asset) and reduces owner’s equity (capital). It represents drawings by the owner, lowering the resources and equity of the business.

(4a)

Depreciation is the gradual reduction in the value of a fixed asset over time due to wear and tear, usage, obsolescence, or passage of time. It represents the cost of using the asset and is recorded as an expense in the financial statements.

(4b)

(PICK ANY FOUR)

(i) Wear and Tear: Physical deterioration due to regular usage.

(ii) Passage of Time: Even without use, some assets lose value over time.

(iii) Obsolescence: Assets become outdated due to technological advancements.

(iv) Exhaustion: In the case of natural resources, depletion causes depreciation.

(v) Accidents or Damages: Unexpected events can reduce an asset’s value.

(vi) Lack of Maintenance: Poor upkeep can accelerate depreciation.

(vii) Legal or Regulatory Changes: New laws may reduce the usability or value of an asset.

(4c)

Scrap value is the estimated amount that a fixed asset can be sold for at the end of its useful life. It represents the residual value after the asset is no longer useful for operations.

 WHILE

Estimated useful life of a fixed cost , on the other hand, is the expected time period during which the asset will be actively used in the business to generate income.