Financial Accounting WASSCE (SC), 2019

Section A: Theory of Financial Accounting

 

Question 3


(a) State three effects of drawings on the business of a sole proprietor.

(b) Explain how the following items are treated in the balance sheet:

(i) accrued expenses;

(ii) prepaid expenses;

(iii) accrued income.

Observation


Majority of the candidates attempted this question and the performance was impressive with many of them gaining scores above average.

Some of the expected responses were: