Jamb Accounts - Principles of Accounts 1997 Past Questions and Answers

Question 31:

• JAMB 1997

Adamu, Babaji and Chukwu are in partnership and they share profit and losses on ratio 3:2:1. Their respective capitals are N20 000, N15 000 and N5 000 on which on which they are entitle to interest at 5% per annum. The profit for the year before charging interest on capital amounted to N5 500.
Calculate the profit for Adamu?

A. N583
B. N1 000
C. N1 167
D. N1 750

Question 32:

• JAMB 1997

Faruk and Osawe are in partnership sharing profits and losses in the ratio of 3:7. Faruk is to receive a salary of N9 000. In one accounting period, the business recorded a loss of N1 500 (before deduction of Faruk's salary). The appropriate distribution of the net loss would be?

A. Faruk, (N450); Osawe, (N1 050)
B. Faruk, (N3 150); Osawe, (N7350)
C. Faruk, (2 250); Osawe, (N7 350)
D. Faruk, (N450); Osawe, (N1 050)

Question 33:

• JAMB 1997

Share premium can be used to?
i. write off discount on shares
ii. give loans to directors
iii.pay dividends
iv. pay company's formation expenses.

A. I and iv only
B. I and iii only
C. Ii and iii only
D. Iii and iv only

Question 34:

• JAMB 1997

Alabede (NIG) limited issued 50 000 ordinary shares of N1 each at a market value of N2.50 each. the share premium is?

A. N125 000
B. N500 000
C. N50 000
D. N25 000

Question 35:

• JAMB 1997

What is the balance of the bank account shown above?

A. N88 500 debit
B. N 88 500 credit
C. N 59 410 credit
D. N 59 410 debit