WASSCE 2019 Financial Accounting Questions and Answers
Financial Accounting Practice Questions, Step-by-Step Answers, MCQs, Accounting Topics, Difficulty Analysis and Examination Revision
WASSCE 2019 Financial Accounting Questions and Answers
This article provides an original set of WASSCE-style Financial Accounting practice questions and answers based on common areas of the subject. It is designed for students who want to revise accounting concepts, calculations and practical accounting procedures.
The material includes theory questions, practical accounting questions, multiple-choice questions, solutions and detailed topic analysis.
The questions below are newly written practice questions. They are not a verbatim reproduction of the original 2019 examination paper.
Financial Accounting Topics Covered
| Topic | Practice Focus |
|---|---|
| Accounting Concepts | Basic principles and accounting information |
| Cash Book | Cash, bank and contra entries |
| Petty Cash | Imprest system and analysis columns |
| Bank Reconciliation | Reconciling cash book and bank statement |
| Final Accounts | Trading, profit and loss and financial position |
| Adjustments | Accruals, prepayments and depreciation |
| Partnership Accounts | Appropriation and partners’ accounts |
| Branch Accounts | Branch accounting principles |
| Journal Entries | Recording and correcting transactions |
| Suspense Account | Correction of accounting errors |
SECTION A – FINANCIAL ACCOUNTING QUESTIONS & ANSWERS
Each question is followed by an answer and detailed accounting analysis.
Four qualities of useful accounting information are:
- Relevance
- Reliability
- Comparability
- Understandability
Useful accounting information should help users make decisions and should be presented clearly enough for users to understand its meaning.
The business entity concept states that the business is treated as a separate entity from its owner or owners for accounting purposes.
Therefore, business transactions are recorded separately from the personal transactions of the owner.
For example, if an owner uses personal money to invest in the business, the amount is recorded as capital introduced into the business.
Cost of goods = ₦80,000
Sales = ₦110,000
Gross Profit = Sales − Cost of Goods Sold
= ₦110,000 − ₦80,000
= ₦30,000
Therefore, the gross profit is ₦30,000.
A trial balance is prepared to list the debit and credit balances of ledger accounts at a particular date.
Its major purpose is to check the arithmetical accuracy of the double-entry bookkeeping system.
However, agreement of a trial balance does not prove that every accounting entry is completely correct because certain types of errors may not affect the equality of debit and credit totals.
A contra entry is a transaction that affects both the cash and bank columns of the same cash book.
For example, when cash is deposited into the business bank account, the cash balance decreases while the bank balance increases.
A contra entry is commonly marked with the letter C in the folio column.
Possible reasons include:
- Unpresented cheques.
- Uncredited lodgements.
- Bank charges not yet entered in the cash book.
- Direct payments or receipts recorded by the bank but not yet entered in the cash book.
Closing Capital = ₦620,000
Opening Capital = ₦500,000
Drawings = ₦80,000
Formula:
Profit = Closing Capital + Drawings − Opening Capital
= ₦620,000 + ₦80,000 − ₦500,000
= ₦700,000 − ₦500,000
= ₦200,000
The imprest system is a method of operating a petty cash fund in which a fixed amount is provided to the petty cashier for small expenses.
At the end of a period, the amount spent is calculated and the petty cashier is reimbursed by the exact amount spent so that the cash returns to the original imprest level.
For example, if the imprest is ₦20,000 and ₦14,000 is spent, the cashier receives ₦14,000 to restore the fund to ₦20,000.
Cost of machine = ₦600,000
Residual value = ₦0
Useful life = 5 years
Straight-line depreciation:
Depreciation = (Cost − Residual Value) ÷ Useful Life
= (₦600,000 − ₦0) ÷ 5
= ₦600,000 ÷ 5
= ₦120,000 per year
Examples include:
- Error of omission.
- Error of commission.
- Error of principle.
- Error of original entry.
The appropriate correcting entry depends on the nature of the error and the accounts affected.
A suspense account is a temporary account used to record an unexplained difference or item when the correct accounting treatment has not yet been determined.
Once the cause of the difference is identified, the necessary correcting entries are made and the suspense account is cleared.
Examples include:
- Partners’ salaries.
- Interest on partners’ capital.
- Interest on drawings.
The appropriation account shows how the profit available to partners is distributed according to the partnership agreement.
SECTION B – FINANCIAL ACCOUNTING MCQs
Original objective practice questions with answers and topic analysis.
Which account is used to record the owner’s investment in a business?
Topic: Capital | Difficulty: Easy
Which book records credit purchases of goods?
Topic: Books of Original Entry | Difficulty: Easy
Which document is normally issued by a seller to show goods sold on credit?
Topic: Source Documents | Difficulty: Easy
The amount owed by customers to a business is called:
Topic: Receivables | Difficulty: Easy
Which account is normally debited when goods are purchased for resale on credit?
Topic: Double Entry | Difficulty: Easy
Which of the following is a non-current asset?
Topic: Assets Classification | Difficulty: Easy
Which item reduces the owner’s capital?
Topic: Capital | Difficulty: Easy
The main purpose of a bank reconciliation statement is to:
Topic: Bank Reconciliation | Difficulty: Easy
Which account records the distribution of partnership profit?
Topic: Partnership | Difficulty: Easy
Depreciation is charged mainly to:
Topic: Depreciation | Difficulty: Moderate
A trial balance is prepared from:
Topic: Trial Balance | Difficulty: Easy
Which error occurs when a transaction is completely omitted from the books?
Topic: Errors | Difficulty: Easy
Financial Accounting Paper Analysis
Financial Accounting requires both theoretical understanding and practical application. A student may know the definition of a concept but still lose marks if the accounting treatment is incorrect.
Detailed Practice Questions
Objective MCQs
Accounting Areas
Topic-Wise Analysis
1. Accounting Concepts
This area tests the foundation of accounting. Students should understand concepts such as business entity, going concern, consistency, prudence and money measurement.
2. Cash Book
Cash book questions require accurate understanding of receipts, payments, bank transactions and contra entries. Students should practise identifying which side of the cash book each transaction affects.
3. Bank Reconciliation
Bank reconciliation questions commonly involve differences caused by timing and transactions recorded by one side but not yet by the other.
4. Petty Cash
Students should understand the imprest system and how small expenses are classified and recorded.
5. Final Accounts
Final accounts require students to understand how trading results, expenses, income, assets and liabilities are presented.
6. Adjustments
Accruals, prepayments, depreciation and other adjustments are important because they affect the correct measurement of income and financial position.
7. Partnership Accounts
Students should practise appropriation accounts, partners’ capital accounts, current accounts and distribution of profit.
8. Errors and Suspense Account
A strong understanding of debit and credit principles is essential for correcting accounting errors and preparing suspense-account entries.
Difficulty Analysis
| Difficulty | Main Characteristics | Examples |
|---|---|---|
| Easy | Definitions, direct calculations and basic classifications. | Capital, source documents, simple profit calculation. |
| Moderate | Application of accounting principles and multi-step calculations. | Bank reconciliation, depreciation and incomplete records. |
| Difficult | Several accounting concepts must be combined. | Complex adjustments, partnership and suspense-account problems. |
Common Areas Students Should Practise
- Practise preparing and interpreting cash books.
- Learn the reasons for differences between cash book and bank statement.
- Practise year-end adjustments carefully.
- Understand the difference between capital and revenue items.
- Revise partnership appropriation and partners’ accounts.
- Practise journal entries used for correcting errors.
- Learn how suspense accounts are opened and cleared.
- Practise final accounts using complete sets of figures.
How to Prepare for WASSCE Financial Accounting
Financial Accounting should be studied through a combination of theory and practice. Reading definitions alone is not enough because many examination questions require students to apply accounting rules to transactions.
Begin with the fundamentals of debit and credit. Once these are strong, move to journals, ledgers, cash books and trial balances.
After that, practise final accounts and adjustments. These areas require careful treatment of several pieces of information at the same time.
Partnership, branch and departmental accounts should be practised separately because each has its own accounting procedures.
Finally, use objective questions for quick revision. MCQs are particularly useful for checking whether basic accounting terminology and principles have been remembered correctly.
Exam Mistakes to Avoid
Using Incorrect Accounting Terms
Use proper accounting terminology in theory answers. Avoid replacing standard terms with informal descriptions when a technical term is required.
Mixing Debit and Credit
Before posting an entry, identify the accounts affected and determine whether each account should be debited or credited.
Ignoring Adjustments
Do not ignore information about accruals, prepayments, depreciation or closing inventory when preparing final accounts.
Incorrect Headings
Accounting statements should be presented with appropriate headings and dates. Clear presentation makes the answer easier to follow.
Skipping Working
For calculation-based questions, show important working. This helps you check your own calculations and present the accounting treatment clearly.
Quick Revision Checklist
- Accounting concepts
- Double-entry principles
- Source documents
- Cash book
- Petty cash book
- Bank reconciliation
- Trial balance
- Errors and rectification
- Suspense account
- Depreciation
- Final accounts
- Adjustments
- Partnership accounts
- Branch accounts
- Departmental accounts
Frequently Asked Questions
What is this WASSCE 2019 Financial Accounting article?
It is a practice resource containing original Financial Accounting questions, answers, MCQs and topic-based revision material for WASSCE preparation.
Are these the exact original 2019 examination questions?
No. The questions in this article are original practice questions designed around common Financial Accounting concepts. They are not a verbatim copy of the original examination paper.
Does the article include Financial Accounting MCQs?
Yes. The MCQ section contains objective practice questions with four options, answers and topic information.
Which topics should students revise carefully?
Students should give particular attention to final-account adjustments, petty cash, branch and departmental accounts, partnership accounts, journal entries and suspense accounts.
How should I use the questions?
Attempt each question without checking the answer first. Then compare your working with the solution and identify any accounting principle you need to revise.
Why is practical accounting important?
Financial Accounting questions often require students to apply concepts to actual transactions. Practical exercises therefore help convert theoretical knowledge into correct accounting treatment.
How can I improve my accounting calculations?
Practise step-by-step calculations, write the relevant formula or accounting rule, maintain correct debit and credit treatment and check the final totals.
How should I prepare for theory questions?
Learn accounting terminology and practise explaining each concept in clear, complete sentences. Include relevant examples when they help explain the principle.
Final Analysis
A strong WASSCE Financial Accounting preparation strategy should combine conceptual knowledge with repeated practical exercises. Students should not depend entirely on memorising answers because the same accounting principle can appear in many different forms.
Cash book, petty cash, bank reconciliation, final accounts, adjustments, partnership and error-correction questions require students to understand the accounting process and apply it accurately.
The best revision method is to solve a question first, compare the working with the answer, identify the exact mistake and then solve a similar question using different figures.
Learn the concept → Study an example → Solve independently → Check the answer → Identify the mistake → Practise another question → Take a timed test.
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