#NECO 2021: NECO Book Keeping Objective And Essay Pratical Answers for 10th August 2021

#NECO 2021 Book Keeping Objective And Essay Answers for 10th August 2021

Below are NECO Book Keeping Objective And Essay Answers for 10th August 2021 for those writing and searching for the Objective And Essay Answers.

Paper III & II: Objective & Essay – Book Keeping 

OBJECTIVE ANSWERS

1-10: ECDDCEACCD

11-20: BAEBDDDDAA

21-30: BCBEBEEDCB

31-40: ECAEBBDBBA

41-50: EDEDACBBDA

51-60: CDDDDACAAE

ESSAY/THEORY ANSWERS

(1a)

The business entity concept states that the business is separate from the owner(s) of the business. Therefore the accounting records for even the simplest business, the sole trader, must be kept separate from the personal affairs of the owner or owners.

(1b)

(i) Opening Entries: Entries passed to open a new set of books by an entity which is either starting a new business or continuing business to open a new set of books at the beginning of an accounting period.

(ii) Transfer Entries: For transfer of any amount from one account to another. Credit purchase and sale of fixed assets.

(ii) Rectification Entries: Entries needed to rectify errors in the books of accounts.

(iv) Adjusting Entries: Entries needed before preparation of final accounts for items like accruals, prepayments, depreciation, etc.

(v) Closing Entries: Entries needed to transfer the balances of nominal accounts to the Trading and Profit and Loss Account at the end of an accounting period.

(2a)

The principal of double-entry says that for every debit entry there must be a corresponding credit entry i.e There should be at least two accounts involved in any transaction. (DR the receiver and CR the giver)

(2b)

(i) Invoice

(ii) credit note

(iii) debit note

(iv) petty cash voucher

(v) statement of account

(vi) receipts

(3a)

depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic manner until the value of the asset becomes zero or negligible.

(3b)

Assets

(i)Current assets

(ii) Fixed assets

(iii) Financial Assets

(iv) intangible Assets

(v) tangible Assest

(vi)Operating Assets

Limitations

(i)Fixed assets are shown in the Balance Sheet at their book value (Historical cost-Depreciation to the original value of assets date). A conventional Balance Sheet does not reflect.

(ii) As fixed assets are shown in the Balance Sheet at their book value, therefore, it does not have any relationship with the market value.

(iii) Balance Sheet cannot reflect the value of certain.

factors which serve like assets, such as skill and loyalty of the staff.

(iv)conventional Balance Sheets may mislead the untrained readers in inflationary situations.

(3c)

(i)Less paperwork to get started.

(ii)Easier processes and fewer requirements for business taxes.

(iii) Fewer registration fees.

(iv) More straightforward banking. (v)Simplified business ownership

(4a)

A suspense account is an account used temporarily or permanently to carry doubtful entries and discrepancies pending their analysis and permanent classification.

(4b)

(i) Owners and investors

(ii) Management

(iii) Lenders

(iv) Trade creditors or suppliers

(v) Government

(vi) Employees

(vii) Customers

(4c)

(i) Always Compliant with the Law.

(ii) It Is Easier to Plan.

(iii) Instant Reporting

(iv) Better Relations with Banks and Investors.

(v) Better Tax Prediction.

(vi) Faster Business Response Time.

(5)

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