Eight multiple choice and two written, marked as you go. Free, no account.
Partnerships: Current Account Balances
Answer: B. GH₵4,000 credit
Credit side = Bal b/d GH₵2,000 + Salary GH₵3,000 + Interest on capital and profit share GH₵5,000 = GH₵10,000. Debit = Drawings GH₵6,000. Balance c/d = GH₵10,000 − GH₵6,000 = GH₵4,000 credit. A credit balance means the firm owes Esi.
Partnerships: Goodwill on Admission
Answer: C. GH₵10,000
Goodwill was raised and credited to existing partners in their old profit-sharing ratio (1:1). Kofi received GH₵5,000 and Ama received GH₵5,000, so total goodwill = GH₵10,000. The goodwill was then written off in the new ratio (1:1:1) — each partner debited GH₵3,333 (GH₵3,334 for rounding). This ensures old partners are compensated for goodwill they built before the new partner joined.
Club Accounts: Income and Expenditure
Answer: C. GH₵4,500
Total income = GH₵9,200 + GH₵2,000 + GH₵1,800 = GH₵13,000. Total expenditure = GH₵3,600 + GH₵1,200 + GH₵1,000 + GH₵1,800 + GH₵900 = GH₵8,500. Surplus = GH₵13,000 − GH₵8,500 = GH₵4,500. Note: the Income and Expenditure Account is prepared on an accruals basis (unlike the Receipts and Payments Account which is cash-based). Non-trading organisations report surplus/deficit, not profit/loss.
Joint Venture: Memorandum Account
Answer: D. Kofi GH₵2,750 and Ama GH₵2,750
Profit = GH₵21,500 − GH₵16,000 = GH₵5,500 (or from credit side: GH₵20,000 + GH₵1,500 = GH₵21,500 minus debit costs GH₵8,000 + GH₵6,000 + GH₵1,200 + GH₵800 = GH₵16,000). Equal sharing: GH₵5,500 ÷ 2 = GH₵2,750 each. In a joint venture, profit is shared in the agreed ratio regardless of who contributed more goods or expenses.
Source Documents: Accounting Cycle
Answer: D. Journal (Books of Original Entry)
The accounting cycle follows this order: Source Documents → Books of Original Entry (Journals/Day Books) → Ledger → Trial Balance → Final Accounts. Box X represents the Journal or Books of Original Entry, which include the Sales Day Book, Purchases Day Book, Returns Books, Cash Book, and the General Journal. These are where transactions are first recorded before being posted to the ledger.
Final Accounts: Trading Account
Answer: A. GH₵11,500
Gross Profit = Net Sales − Cost of Goods Sold = GH₵26,500 − GH₵15,000 = GH₵11,500. Net Sales = Sales (GH₵28,000) − Returns Inward (GH₵1,500) = GH₵26,500. Cost of Goods Sold = Opening Stock (GH₵4,000) + Net Purchases (GH₵16,800) − Closing Stock (GH₵5,800) = GH₵15,000.
Company Accounts: Profit Appropriation
Answer: A. GH₵20,000
Available = GH₵45,000 + GH₵8,000 = GH₵53,000. Appropriations: General reserve GH₵10,000 + Dividend GH₵15,000 + Tax GH₵8,000 = GH₵33,000. Retained earnings c/f = GH₵53,000 − GH₵33,000 = GH₵20,000. The appropriation account shows how profit is distributed between reserves, dividends, tax, and retained earnings.
Income Statement: Net Profit Calculation
Answer: C. GH₵16,000
Income side: Gross Profit GH₵30,000 + Discount received GH₵1,000 = GH₵31,000. Expenses: Rent GH₵5,000 + Salaries GH₵8,000 + Insurance GH₵2,000 = GH₵15,000. Net Profit = GH₵31,000 − GH₵15,000 = GH₵16,000. Discount received is income, not an expense.
Marking guide
(a) Closing Balance (3 marks):
Total credit side = GH₵12,000 + GH₵30,000 = GH₵42,000
Total known debits = GH₵20,000 + GH₵1,200 + GH₵2,800 + GH₵1,500 = GH₵25,500
Balance c/d = GH₵42,000 − GH₵25,500 = GH₵16,500
The closing balance is GH₵16,500 (credit balance).
(b) What the balance represents (2 marks):
The credit balance of GH₵16,500 represents the total amount owed by the business to all its trade creditors (suppliers) at the end of the period. It is a current liability on the balance sheet.
(c) Possible reasons for difference with individual balances (5 marks):
The control account shows GH₵16,500 but individual creditor balances total GH₵16,200, a difference of GH₵300. Possible reasons:
Marking guide
(a) Closing stock (3 marks):
Total debit (stock available) = Opening stock GH₵3,000 + Goods sent GH₵15,000 = GH₵18,000
Total credit (stock used) = Cash sales GH₵12,000 + Returns to H/O GH₵500 = GH₵12,500
Closing stock = GH₵18,000 − GH₵12,500 = GH₵5,500
(b) Double entry for goods sent to branch (2 marks):
In the head office books:
Debit: Branch Stock Account GH₵15,000
Credit: Goods Sent to Branch Account GH₵15,000
(Being goods transferred to Sunyani branch at cost)
(c) Why head office maintains this account (3 marks):
The head office maintains the Branch Stock Account to control and monitor stock movements at the branch. It enables the head office to track what stock should be at the branch, detect discrepancies such as theft or wastage (by comparing the book figure with actual stock count), and determine the branch profit or loss without the branch needing its own full accounting system.
Topics on this page: Partnerships: Current Account Balances; Partnerships: Goodwill on Admission; Club Accounts: Income and Expenditure; Joint Venture: Memorandum Account; Source Documents: Accounting Cycle; Final Accounts: Trading Account; Company Accounts: Profit Appropriation; Income Statement: Net Profit Calculation; Control Accounts: Creditors Ledger Control; Branch Accounts: Goods Sent to Branch.
Notes, practice questions and a mark scheme for topics on the syllabus.
They are written in the style of the WASSCE, the way the examiners ask, and every one comes with the correct answer and a worked explanation. Inside GLearn there are also questions taken from past papers.
Yes, on this page: type your answer and the coach marks it with AI and shows you where the marks are, a few a day with no account. Inside GLearn, every answer you write.
No. You need one only to save your score and to keep going once the free marking for the day is used.
Nobody can promise that. These test the same topics and the same kind of thinking the WASSCE does, which is what practice is for. There are thousands more across BECE and WASSCE inside GLearn; this page shows a small sample.