WAEC GCE 2014/2015 CORRECT ANSWER FOR FINANCIAL ACCOUNTING Q1a) A type of business organization in which two or more individuals pool money , skills , and other resources , and share profit and loss in accordance with terms of the partnership agreement . In absence of such agreement, a partnership is assumed to exit where the participants in an enterprise agree to share the associated risks and rewards proportionately . . 1b) A dormant partner Is a Contributor or investor who is not active in managing a firm and may not be known to the outsiders. A dormant partner shares profits and losses with other partners but (if he or she is not a signatory to the loan agreements) generally may withdraw from the firm without notice to the lenders. (1c) i. The capital to be contributed by each partner ii. the rate of interest on capital iii. the rate of interest on drawings iv. the division of profits and losses v. the basis of valuing goodwill on the death or retirement of a partner 4a.) computer is any device that is capable of accepting data automatically, applying a sequence of process to the data and supplying the results of these processes. 4bi). input data is a data or raw information accepted by a computer to be processed into a useful information eg ii).output data is the result information from a computer when it has been processed iii.) input components are devices used to insert commands into computer for processing eg keyboard iv.) output components are devices which displays the useful information that has been processed from raw data eg monitor (9a) Gross profit percentage for 2010 G.p/sales * 100 = 50000/200000* 100 = 25% for 2011 =70000/280000*100 =25% (9b) Stock turnover ratio for 2010 Average stock/2 = 50000+20000/2 =70000/2 =35000 cost of sale/average stock = 150000/35000 =4.2=4 times Stock turnover ratio for 2011 20000+30000/2 =50000/2 =25000 cost of sales/average stock =210000/25000 =8.4 = 8times (9c) Net profit percentage for 2010 Net profit/sales*100 = 12000/200000*100 =6% Net profit percentage for 2011 Net profit/sales*100 =20000/280000*100 =7.14% (9d) Acid test ratio for 2010 = current asset - stock/current liability =25000/1500 =1.66 : 1 Acid test ratio for 2011 = current asset - stock/current liability =33000/12000 =2.75 : 1 (9e) Current Ratio 2010 = current asset / current liability = 45000/15000 = 3 : 1 Current Ratio 2011 = current asset / current liability = 63000/12000 =5.25 : 1
Posted on: Tue, 09 Sep 2014 09:43:49 +0000