Dissolution of partnership - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 2002

Upon the dissolution of a partnership, the Partnership Act provides that the amount realized should be?

A. Used to pay all taxes due to government
B. Used to start a new partnership business by members who are willing
C. Shared equally by the existing partners
D. Used in paying the debts and liabilities of the firm to persons who are not partners

Question 7:

• JAMB 2004

On dissolution, the final distribution of cash to partners is based on?

A. Patnership agreement
B. Articles os asssociation
C. Goodwill
D. Capital balances

Question 8:

• JAMB 2005

When assets are realized during a partnership dissolution, the entries for the proceeds are to debit?

A. Cash account and credit realization account
B. Rassets account and credit realization account
C. Realization account and credit realization account
D. Assets account and credit cash account

Question 9:

• JAMB 2008

In partnership dissolution, an asset taken over by a partner is debited to?

A. Partners capital account and credited to realization account
B. Partners capital account and credited to asset account
C. Asset account and credited to realization account
D. Realization account and credited to capital account

Question 10:

• JAMB 2011

The transactions relating to liquidation in partnership account is drawn by using?

A. Current account
B. Cash account
C. Capital account
D. Realization account