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WAEC Accounts (Principles of Accounts) questions: Accruals, prepayments and provisions

17 questions with answers and explanations. Tap an option to check yourself.

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All topicsAccounting concepts and conventions · 17Accounts of not-for-profit organisations · 14Accruals, prepayments and provisions · 17Bank reconciliation statements · 16Branch and departmental accounts · 16Company accounts · 15Control accounts · 15Depreciation of non-current assets · 17Double entry and the ledger · 19Final accounts of a sole trader · 19Incomplete records · 15Manufacturing accounts · 14Nature and purpose of accounting · 14Partnership accounts · 15Petty cash and the imprest system · 14Public sector accounting · 14Source documents and books of original entry · 14The cash book and discounts · 16The trial balance and errors · 16

  1. Question 1· Accruals, prepayments and provisions· WAEC

    Debtors are ₦40,000 and a provision for doubtful debts of 5% is required. The provision is

    Explanation and discussion

  2. Question 2· Accruals, prepayments and provisions· WAEC

    Rent owing at the end of the year is

    Explanation and discussion

  3. Question 3· Accruals, prepayments and provisions· WAEC

    Insurance paid ₦12,000 covered 15 months, 3 of which fall into next year. The charge for this year is

    Explanation and discussion

  4. Question 4· Accruals, prepayments and provisions· WAEC

    Bad debts written off are

    Explanation and discussion

  5. Question 5· Accruals, prepayments and provisions· WAEC

    A prepaid expense at the year end is shown as

    Explanation and discussion

  6. Question 6· Accruals, prepayments and provisions· WAEC

    Commission receivable but not yet received is shown in the balance sheet as

    Explanation and discussion

  7. Question 7· Accruals, prepayments and provisions· WAEC

    Rent paid during the year was ₦11,000 and ₦1,000 was still owing at the year end. The rent charged to profit and loss is

    Explanation and discussion

  8. Question 8· Accruals, prepayments and provisions· WAEC

    Debtors are ₦50,000 and the provision for doubtful debts is to be 4%. The provision is

    Explanation and discussion

  9. Question 9· Accruals, prepayments and provisions· WAEC

    Wages owing at the end of the financial year are

    Explanation and discussion

  10. Question 10· Accruals, prepayments and provisions· WAEC

    A provision for doubtful debts is

    Explanation and discussion

  11. Question 11· Accruals, prepayments and provisions· WAEC

    Commission earned but not yet received at the year end is

    Explanation and discussion

  12. Question 12· Accruals, prepayments and provisions· WAEC

    Insurance of ₦24,000 paid covers 12 months, of which 3 months relate to next year. How much is charged for the current year?

    Explanation and discussion

  13. Question 13· Accruals, prepayments and provisions· WAEC

    Commission received in advance at the year end is shown as

    Explanation and discussion

  14. Question 14· Accruals, prepayments and provisions· WAEC

    Trade receivables are ₦200,000 and a 5% allowance for doubtful debts is required. Find the allowance.

    Explanation and discussion

  15. Question 15· Accruals, prepayments and provisions· WAEC

    Insurance paid ₦9,000 includes ₦3,000 for next year. The insurance expense for the year is

    Explanation and discussion

  16. Question 16· Accruals, prepayments and provisions· WAEC

    Rent for the year is ₦60,000 but only ₦45,000 has been paid. How is the difference treated?

    Explanation and discussion

  17. Question 17· Accruals, prepayments and provisions· WAEC

    A prepaid expense appears in the balance sheet as

    Explanation and discussion

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