Conversion of a partnership to a company - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 1:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 2:

• JAMB 1995

Interest on a partner's drawings is debited to the

A. Partners current account and credited to the profit and loss appropriation account
B. Profit and loss appropriation account and credited to the partner's current account
C. Profit and loss account and credited to the partner's current account
D. Partner's current account and credited to the profit and loss account

Question 3:

• JAMB 2000

An outright sale of a partnership amounts to the?

A. Compensation of vendors by the purchase
B. Admission of a new partner
C. Purchase of rights of a dead partner
D. Change of sharing ratio of vendors

Question 4:

• JAMB 2003

For the purpose of conversion of a partnership to a company, a total purchase consideration of N3.6m was paid. If 30% of the purchase consideration was in cash and the rest by 50k shares, how many shares issued?

A. N1080 000
B. N2 160 000
C. N3 600 000
D. N5 040 000

Question 5:

• JAMB 2006

In converting a to a partnership company, the loss on asset revaluation is?

A. Debited to the revaluation account
B. Debited to the profit and loss account
C. Credited to the revaluation account
D. Credited to the profit and loss account