Partnership Accounts - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 81:

• JAMB 2012

In converting a partnership into a limited liability company, the necessary accounts to be opened in the books of the company are

A. Business purchase account and ordinary share capital account
B. Business purchase account, vendor account and ordinary share capital account
C. Business purchase account and vendor account
D. Ordinary share capital account, vendor account and unpaid share capital account

Question 82:

• JAMB 2013

The amount paid by a new partner on admission as a compensation for the reputation built up by old partners is a

A. Bonus
B. Commission
C. Premium
D. Goodwill

Question 83:

• JAMB 2013

A partnership's internal regulations are set out by

A. A deed
B. A law
C. A constitution
D. An article

Question 84:

• JAMB 2013

In a partnership account, interest on drawings is

A. Debited to appropriation account
B. Credited to appropiation account
C. Treated as an expense in profit and loss account
D. Recorded in the balance sheet as current assets

Question 85:

• JAMB 2014

In the absence of a partnership deed, the act stipulates that

A. An amount should be fixed as salary for partners
B. Interest on partners loan should be 25%
C. Interest should not be allowed on partners drawings
D. Profits and losses should not be shared equally