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2024 NECO GCE FINANCIAL ACCOUNTING OBJ AND ESSAY ANSWERS
ACCOUNT OBJ
1-10: BCCBDBECAA
11-20: ADBDBACBEE
21-30: BDDEDCDAEC
31-40: CAEAECAAEC
41-50: DBECBDCEBA
51-60: BABEECACCB
BONUS
(2a)
-Similarities-
(i)they are both offered by the seller to the purchaser.
(ii)they both reduce the final amount that needs to be paid.
-Differences-
(i)Trade discount is given on the catalogue price of the goods while the cash discount is given on the invoice price.
(ii)Trade discount is granted with the aim of increasing the sales in bulk quantity, whereas Cash discount is granted to facilitate a quick payment.
(2bi)
real account; That is the general ledger account that does not close at the end of the accounting year. In other words, the balances in the real accounts are carried over to become the beginning balances of the next accounting period.
-Examples of real accounts are:
(i)Cash.
(ii)Accounts receivable.
(iii)Fixed assets.
(2bii)
Personal Account; These accounts are related to individuals, firms, companies, In other words is an account for use by an individual for that person’s own needs. It is a relative term to differentiate them from those accounts for business or corporate use.
-Examples Of personal accounts are;
(i)debtors
(ii)creditors
(iii)banks
(2c)
nominal accounts It also the general ledger accounts that are closed at the end of each accounting year. In other words it is as a result, the nominal accounts are also referred to as temporary accounts. The closing process also means that each nominal account will start the next accounting year with a zero balance.
-Examples Of nominal accounts are;
(i)purchase account
(ii)sales account
(iii)salary A/C
(2c)
(i)Bank statement.
(ii)Cash register tape.
(iii)Credit card receipt.
(iv)Lockbox check images.
(v)Packing slip.
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(1a)
(i) managers
(ii) owners of the business
(iii) investors
(iv) creditors of funds
(v) government agencie
(1b)
(i) It is use for Writing off bad debts.
(ii) It is use for Recording of issues.
(iii) It is use for record sale of fixed assets on credit.
(iv) It is use for record purchase of fixed assets on credit.
(v) It is use for Correction of errors.
(1c)
(i) Internal economic capital
(ii) External economic capital
(iii) Natural capital
(iv) Human capital
(v) Social and relationship capital
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(3a)
Branch accounting is a bookkeeping system in which separate accounts are maintained for each branch or operating location of an organization.
(3b)
(i)Individual result of each department can be known which helps to compare the performances among all the departments, i.e., the trading results can be compared.
(ii)Departmental accounts help to understand or locate the success, failure, rates of profit, etc.
(iii)It helps the management to make a proper plan of action, policies in order to increase profit after analyzing the results of the operation of various departments.
(iv)Departmental accounting helps us to understand which department should be expanded further or which one should be closed down as per the results of the operation.
(v)It helps to encourage a healthy competitive spirit among the various departments which, ultimately, helps to increase profits of the firm as a whole.
(3c)
(i)To know the profit or loss of each branch separately.
(ii)To ascertain the financial position of each branch separately on a particular date.
(iii)To know the cash & goods requirements of the various branches.
(iv)To evaluate the progress and performances of each branch
(v)To calculate commission for payment to the managers, if based on profits of branch.
Categories: Neco Gce