Jamb Accounts - Principles of Accounts 1999 Past Questions and Answers

Question 26:

• JAMB 1999

A credit balance on a receipt and payments account indicates that the non-profit making organization?

A. Had more revenues than expenses during the period
B. Did not owe much liabilities during the period
C. Received more cash than it paid out during the period
D. Made more cash payments than it received during the period

Question 27:

• JAMB 1999

Goodwill can be valued in partnership when?

A. A partners make profits
B. Large losses are made
C. A partner retires
D. A new branch is opened

Question 28:

• JAMB 1999

As part of the initial investment, a partner contributes office equipment that originally cost N20,000 and on which provision for depreciation of N12,500 had been recorded. If the partners agree on a valuation of N9,000 for the equipment, what amount should be debited to the office equipment account?

A. N7,500
B. N9,000
C. N12,500
D. N20,000

Question 29:

• JAMB 1999

When a partner makes a drawing of stock items from a partnership, the accounting impact of the drawing is to increase the partner's?

A. Goodwill account balance
B. Current account credit balance
C. Current account debit balance
D. Profit and loss credit balance

Question 30:

• JAMB 1999

Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?

A. They will simply continue since there are no new members
B. The partnership is formally ended and new company books opened
C. The shares and all other items will be shared equally and not in their former ratios
D. Computation of goodwill must be done as it is legally required