waecE-LEARNING
Financial Accounting May/June 2012  
Questions: 1 2 3 4 5 6 7 8 9 Main
General Comments
Strength
Weakness/Remedies





question 1

Explain the following types of accounts and in each case, state the rules regarding the recording of transaction in their debit and credit ides:

    • Personal Account;
    • Real Account;
    • Nominal Account;
    • Liabilities Account;
    • Assets Account.
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observation

Majority of the candidates’ attempted this question and their performance was very poor. The expected answers includes:
Q1 (a) Personal Account -  It is accounts of persons (natural/artificial/individual/organizations) dealing with the business.
             Rule:       Dr  -  The receiver
                             Cr  -  The giver

      (b) Real Account -  This relates to accounts of items that can be seen, touch or
be moved.

            Rule:        Dr - Increases in value (what comes in)
                            Cr - Decreases in value (what comes in)

  1. Nominal Account - This relates to accounts of income and expenditure

 of a business.

             Rule:       Dr - losses and expenses
                           Cr - incomes and gains

     (d)   Liabilities Account - It relates to accounts of the indebtedness of a business.
              Rule:        Dr - decreases in liability
                          Cr - increases in liability

    (e)  Assets Account - It relates to the accounts of items owned by the business.
             Rule:       Dr - increases in assets
                         Cr - decreases in assets


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