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2016 waec bookkeeping answers now available

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(2a) Bad debts refers to account or
trade accounts receivable that will
not be collected. However, bad
debts can also refer to notes
receivable that will not be collected.
(2b) The provision for doubtful
debts is the estimated amount of
bad
debt that will arise from accounts
receivable that have been issued
but not yet collected. It is identical
to the allowance for doubtful
accounts.
(2c) Accrued income is the income
that is earned in a fund or by
company by providing a service or
selling a product, but has yet to
be received. Mutual funds or other
pooled assets that accumulate
income over a period of time but
only pay it out to shareholders once
a year are, by definition, accruing
their income.
(2d) Prepaid expenses are future
expenses that have been paid in
advance. You can think of prepaid
expenses as costs that have been
paid but have not yet been used up
or have not yet expired. The
amount of prepaid expenses that
have not yet expired are reported
on
a company�s balance sheet as an
asset.
(2e) An accrued expense is an
accounting expense recognized in
the
books before it is paid for. It is a
liability, and is usually current.
These expenses are typically
periodic and documented on a
company�s balance sheet due to the
high probability that they will be
collected.
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1a)
Final accounts give a concise idea
about the profitability and
financial position of a business to
its management, owners, and
other interested parties. All
business transactions are first
recorded in a journal. They are
then transferred to a ledger and
balanced. These final tallies are
prepared for a specific period.
The preparation of a final
accounting is the last stage of the
accounting cycle.
(1bi)
-Trade discount is given on the
catalog price of the goods, while
the cash discount is given on the
invoice price.
-Trade discount is granted with the
aim of increasing the sales in
bulk quantity, whereas Cash
discount is granted to facilitate a
quick payment.
-Trade discount is allowed to all
customers, while the Cash
discount is allowed to those
customers, who purchase goods -In
case of Trade Discount, no entry is
made in the books of
accounts, while the proper entry is
made in the books of accounts
for the cash discount.
-Trade discount is allowed at the
time of purchase, while the cash
discount is allowed at the time
when the payment is done.
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(3a)
A source document is the original
record containing the details to
substantiate a transaction entered
in an accounting system. For
example, a company�s source
document for the recording of
merchandise purchased is the
supplier�s invoice supported by the
company�s purchase order and
receiving ticket.Source documents
also detail the particulars of
transactions that include
the date, name, address, terms, and
product description among
other
relevant pieces of information.
(3b)
-Quotation
-Sales order
-Purchase order
-Invoice
-Credit note
-Debit note
-Goods receipt notewakagist 2016 waec bookkeeping answers now available

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