Jamb Accounts - Principles of Accounts 1998 Past Questions and Answers

Question 36:

• JAMB 1998

The price paid by an acquiring company is the?

A. Premium
B. Purchase consideration
C. Sales consideration
D. Conversion fee

Question 37:

• JAMB 1998

Use the information below to answer question 38 and 39.
Dan and Baker are in partnership with capital of N50,000 and N30,000 each. The partnership agreement provides that:(i) profits be shared in the ratio of capital. (ii) Baker be paid a salary of N8,000.
(iii) both partners earn interest on capital at 6% p.a.
(iv) both partners pay interest on drawing at 6% p.a.
At the end of the year, Dan drew N15,000 while Baker drew N14,000 in four installment on 31/3,30/6,30/9 and 31/12. The net profit for the year was N48,000. N5,000 is to be written off the Goodwill account.
What is the interest on the drawing by Baker?

A. N210
B. N315
C. N450
D. N840

Question 38:

• JAMB 1998

Dan and Baker are in partnership with capitals of N50,000 and N30,000 each. The partnership agreement provides that: (i) profits be shared in the ratio of capital (ii) both partners earn interest on capital at 6% p.a (iv) both parents pay interest on drawings at 6% p.a. At the end of the year, Dan drew N15,000 while baker drew N14,000 in four installments on 31/3, 30\6, 30\9 and 30\12. The net profit for the year was N48,000. N5000 is to be written off the goodwill account.
Determine the total interest on capital due to the partners?

A. N1200
B. N1800
C. N3000
D. N4800

Question 39:

• JAMB 1998

The ordinary shareholders enjoy the following rights except the right to?

A. Vote at annual general meetings
B. Elect the board of directors
C. Participate in additional issues of shares
D. Receive dividends at a preddetermined rate

Question 40:

• JAMB 1998

Granada Corporation has net assets of N600,000 and contributed capital of N180,000. The corporation has 30,000 shares of common stock outstanding with no preferred stock. This suggest that the corporation has?

A. A book value of N14 per share
B. A book value of N20 per share
C. A deficit of N420,000
D. Retained earnings of N600,000