042tvseries.com Waec 2019 Book keeping Obj & Essay Answer Now Available.

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8‬: *Book Keeping*

1a) A trading account is an account which is prepared to determine the gross profit or gross loss of a business.

2a) Discount is an allowance or
concession in price. Discount is given so that the buyer is induced (lured) to place an order and later to make payment in time.
Discount can be also referred to as a deduction in price. The seller deducts the discount from the gross or total price, and the buyer is supposed to pay the net amount.

2b) 
-i-    • It lower operational business costs.
       • Increases purchasing power.
       • Improves goodwill. 
       • Higher consumer sales
-ii-   • Increases cash flow. 
       • Helps Get the Sale and Spread the News
       • Attracts New Customers
       • Provides Lower Card Processing Fees
[] SIR JOKER: 2a)

 What is Discount


In simple terms, Discount is an allowance or
concession in price. Discount is given so that the buyer is induced (lured) to place an order and later to make payment in time.
Discount can be also referred to as a deduction in price. The seller deducts the discount from the gross or total price, and the buyer is supposed to pay the net amount.


2bii 

(1)Cash discount is an allowance or concession given by the seller to the buyer. 


(2) This discount is offered to encourage the buyer for quick payment or settlement.


(3) It is allowed for immediate payment of cash or payment within a short period.


(4) The cash discount is normally shown in the quotation and invoice . It is deductible from the total price and the buyer is requested to pay only to the net amount.




4b) a) To Calculate the True Profits:
Depreciation is an expense and becomes an important element of the cost of production. Though it is not visible like other expenses and never paid to the outside party yet it is desirable to charge depreciation on fixed assets as these are used for earning purposes; so their depreciation must be deducted out of the income earned from their use in order to calculate true profit net or loss.
b) To show true Financial Position:

Financial position can be studied from the balance sheet and for the preparation of balance sheet fixed assets are required to be shown at their true value. If assets are shown in the balance sheet without any charge made for their use or depreciation, then their value must have been overstated in the balance sheet and will not reflect the true financial position of he business....

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