18/06/2026
YOU CAN USE THIS AS CORRECTION AND ACKNOWLEDGEMENT
THIS IS ACCOUNTING FINANCIAL SOLUTION FOR WAEC 2026.
*NUMBER ONE*
(1a)
Musa Enterprises would prepare a Bank Reconciliation Statement: A Bank Reconciliation Statement is a statement prepared to reconcile or agree the balance shown in the cash book with the balance shown in the bank statement. It helps to identify and explain the causes of differences between the two balances and ensures that the records of both the business and the bank are accurate.
(1b)
(PICK ANY FOUR)
(i) Unpresented Cheques: These are cheques that have been issued by the business to creditors or other parties and have already been entered in the cash book as payments. However, the recipients may not have presented the cheques to the bank for payment. As a result, the bank has not yet deducted the amount from the account, causing the bank statement balance to differ from the cash book balance.
(ii) Uncredited Cheques: These are cheques received from customers and recorded in the cash book as receipts, but the bank has not yet processed and cleared them. Since the bank has not credited the account with the amount of the cheques, the balance shown in the bank statement will be lower than the balance shown in the cash book until the cheques are cleared.
(iii) Bank Charges: Banks often deduct various charges from customers' accounts for services rendered, such as account maintenance fees, commission on turnover, cheque book charges, and transfer fees. These deductions are usually made directly by the bank and may not be known to the business immediately. Therefore, they are not entered in the cash book until the bank statement is received, resulting in a discrepancy.
(iv) Interest Credited by the Bank: A bank may pay interest on a customer's account balance and credit the account accordingly. Since the business may not be aware of the interest credited until it receives the bank statement, the amount may not have been entered in the cash book. This causes the bank statement balance to be higher than the cash book balance.
(v) Direct Debit Payments: A direct debit is an arrangement whereby the bank pays certain bills automatically on behalf of the customer. Examples include electricity bills, insurance premiums, subscriptions, and loan repayments. Because such payments are made directly by the bank, they may not be recorded immediately in the cash book, leading to differences between the two records.
(vi) Standing Orders: Standing orders are instructions given by the account holder to the bank to make regular payments of fixed amounts to specific individuals or organizations at specified intervals. Examples include rent payments, school fees, and loan repayments. If these payments have been made by the bank but not yet entered in the cash book, discrepancies will arise.
(vii) Dishonoured Cheques: A cheque deposited by the business may be rejected or returned unpaid by the bank due to reasons such as insufficient funds, irregular signatures, stale dates, or other banking issues. Although the cheque may have been entered as a receipt in the cash book, the bank will not credit the account. This creates a difference between the balances shown in the cash book and the bank statement.
(viii) Errors in the Cash Book or Bank Statement: Discrepancies may occur as a result of mistakes made either by the business or by the bank. Such errors may include omission of entries, posting entries to the wrong account, entering incorrect amounts, overcasting, undercasting, or duplication of entries. Until these mistakes are identified and corrected, the balances in the cash book and bank statement will not agree.
*WAEC FINANCIAL ACCOUNTING*
*NUMBER FOUR*
(4a)
(PICK ONE ONLY)
(i) Heating and Lighting: Apportioned on the basis of floor area occupied by each department because departments occupying larger spaces are likely to consume more heat and light.
(ii) Advertisement: Apportioned on the basis of sales revenue or turnover of each department since departments generating higher sales benefit more from advertising activities.
(iii) Canteen Expenses: Apportioned on the basis of the number of employees in each department because the canteen facilities are mainly used by staff members.
(iv) Depreciation of Building: Apportioned on the basis of floor area occupied by each department, as the building is used according to the space occupied.
(v) Insurance of Premises: Apportioned on the basis of floor area occupied or value of assets insured in each department because the insurance coverage relates to the premises and assets used by the departments.
(4b)
(PICK FIVE ONLY)
(i) Determination of Departmental Profitability: Departmental accounting enables the business to ascertain the profit or loss made by each department separately. This helps management to identify profitable departments and those that are underperforming, thereby facilitating better decision-making.
(ii) Effective Performance Evaluation: The system provides a basis for measuring the efficiency and effectiveness of each department. By comparing departmental results, management can assess whether departmental managers are achieving their targets and responsibilities.
(iii) Improved Managerial Control: Departmental accounting strengthens management control by making it easier to monitor revenues, expenses, and profits of individual departments. Any inefficiencies, wastage, or excessive costs can be detected and corrected promptly.
(iv) Facilitates Resource Allocation: The information generated from departmental accounts assists management in allocating resources such as capital, labour, and equipment more effectively. Resources can be directed towards departments that offer the highest returns.
(v) Assists in Planning and Budgeting: Departmental accounting provides detailed financial information for each department, making it easier to prepare budgets, forecasts, and operational plans. Management can set realistic targets based on past departmental performance.
(vi) Supports Expansion and Investment Decisions: By showing the performance of individual departments, departmental accounting helps management decide whether to expand, reorganize, merge, or discontinue a department. Investment decisions can therefore be made on a sound basis.
(vii) Encourages Healthy Competition: When departmental results are reported separately, managers and staff become more conscious of their performance. This often creates healthy competition among departments, leading to greater efficiency and productivity.
(viii) Facilitates Comparison of Departmental Results: Departmental accounting allows comparisons between departments within the same organization and across different accounting periods. Such comparisons help management identify strengths, weaknesses, trends, and areas requiring improvement..
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