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

Question 6:

• JAMB 2007

Expense paid during the conversion of a partnership to a company are?

A. Debited to the partners' capital account
B. Debited to the realization account
C. Debited to the cash account
D. Credited to the realization account

Question 7:

• 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 8:

• JAMB 2018

Bala ltd acquired the business of bello ltd and caused the separate existence of the latter company to terminate.

A. Conversion
B. Dissolution
C. Merger
D. Absorption