WASSCE 2023 Accounting Questions (P & L, Depreciation Etc) to WATCH for Candidates. Solve All these questions and show workings in all instances.
WASSCE 2023 Accounting Questions (1)
Below is the summarized Profit and Loss Account of XYZ Company for the year ended December 31, 2022. Study the account and answer the questions that follow:
Profit and Loss Account for the year ended December 31, 2022
Cost of Goods Sold (420,000)
Gross Profit ______
Salaries and Wages (120,000)
Other Expenses (10,000)
Net Profit before Tax ______
Sales for the previous year (2021) were ₵600,000.
The closing stock as at December 31, 2022, was valued at ₵80,000.
The opening stock as at January 1, 2022, was ₵70,000.
Depreciation on fixed assets is charged at 10% per annum.
Income tax expense for the year is ₵15,000.
All figures are in Ghanaian Cedi (₵).
Negative figures are shown in brackets ().
The profit and loss account has been summarized and does not include all expenses.
Any necessary adjustments have not been taken into account.
- Calculate the Gross Profit for the year ended December 31, 2022.
- Determine the Net Profit before Tax for the year.
- Calculate the Closing Stock as at December 31, 2022.
- Determine the Opening Stock as at January 1, 2022.
- Calculate the amount of Depreciation charged on fixed assets for the year.
- Determine the Income Tax Expense for the year.
Note: The questions are based on the summarized Profit and Loss Account provided, and additional calculations are required to answer them.
WASSCE 2023 Accounting Questions: Question 2
Question: ABC Company purchased a delivery van on January 1, 2022, for ₵80,000. The estimated useful life of the van is five years, with a residual value of ₵10,000. The company uses the straight-line depreciation method.
Using the given information, answer the questions below:
- Calculate the annual depreciation expense for the delivery van.
- Determine the accumulated depreciation for the delivery van as of December 31, 2024.
- Calculate the carrying value of the delivery van as of December 31, 2023.
- On January 1, 2025, the company decided to revise the estimated useful life of the van to six years. Calculate the revised annual depreciation expense for the remaining useful life of the van.
- Explain the concept of residual value in relation to depreciation.
- All figures are in Ghanaian Cedi (₵).
- Straight-line depreciation method allocates an equal amount of depreciation expense each year over the useful life of an asset.
- The carrying value of an asset is the original cost of the asset minus its accumulated depreciation.
- The estimated useful life and residual value are estimates made by the company at the time of purchase and may be subject to revision based on future circumstances.
Note: The questions are based on the given information about the delivery van’s purchase, estimated useful life, and residual value.
3) a.What is a nominal account.
b. State six uses of the General Journal.
4.(a) Distinguish between a balance sheet and a journal.
(b) Identify 5(five) errors that do not affect the trial balance
(c) Identify 4(four) causes of depreciation.
5. a) List four items each that are found on the ….
i. credit side of the sales ledger control account;
ii. Debit side of the purchases ledger control account.
b. List seven types of errors a trial balance will not reveal.
6. In this question candidates are required to prepare…
a) statement of affairs
b) Subscriptions account.
c) income and expenditure account.
7. (a) Distinguish between amortization and depletion.
(b) State 2 (two) major financial statements.
Ensure you solve all the above WASSCE 2023 Accounting Questions.