Jamb Accounts - Principles of Accounts 1995 Past Questions and Answers

Question 31:

• JAMB 1995

A partnership on admitting a new member, revalued the business' land and building from N30,000 to N70,00. The difference of N40,000 should be

A. Credited to land and building account
B. Debited to asset revaluation account
C. Credited to asset revaluation account
D. Credited to profit and loss appropriation account

Question 32:

• JAMB 1995

Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu's salary of N3,000 was made.
Halidu's share of the profit is

A. N7,500
B. N6,000
C. N5,400
D. N4,500

Question 33:

• JAMB 1995

Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu's salary of N3,000 was made.
Hamed's share of the profit should be

A. Credited to partners' capital account
B. Credited to partners' current account
C. Credited to appropriation account
D. Debited to partners' drawing account

Question 34:

• JAMB 1995

The conversion of a partners business into a limited liability company affords the

A. General partners the chance of enjoying the limited laibility protection
B. Limited liability partners the chance of enjoying the limited liability protecction
C. Creditors the chance of enjoying the limited liabiity protection
D. Debtors the chance of enjoying the limited liability protection

Question 35:

• JAMB 1995

Which of the following ratios gives an idea of the liquidity of a firm?

A. Turnover ratio
B. Quick ratio
C. Debit ratio
D. Dividend yield