Partners current and capital accounts - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 1998

Use the information below to answer question 38 and 39.
Dan and Baker are in partnership with capital of N50,000 and N30,000 each. The partnership agreement provides that:(i) profits be shared in the ratio of capital. (ii) Baker be paid a salary of N8,000.
(iii) both partners earn interest on capital at 6% p.a.
(iv) both partners pay interest on drawing at 6% p.a.
At the end of the year, Dan drew N15,000 while Baker drew N14,000 in four installment on 31/3,30/6,30/9 and 31/12. The net profit for the year was N48,000. N5,000 is to be written off the Goodwill account.
What is the interest on the drawing by Baker?

A. N210
B. N315
C. N450
D. N840

Question 7:

• JAMB 1998

Dan and Baker are in partnership with capitals of N50,000 and N30,000 each. The partnership agreement provides that: (i) profits be shared in the ratio of capital (ii) both partners earn interest on capital at 6% p.a (iv) both parents pay interest on drawings at 6% p.a. At the end of the year, Dan drew N15,000 while baker drew N14,000 in four installments on 31/3, 30\6, 30\9 and 30\12. The net profit for the year was N48,000. N5000 is to be written off the goodwill account.
Determine the total interest on capital due to the partners?

A. N1200
B. N1800
C. N3000
D. N4800

Question 8:

• 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 9:

• JAMB 2000

Use the information below to answer question
Rakiya and Joy are in partnership and agreed that 5% interest per annul is to be charged on drawings. The drawing made by both partners in one year were: Rakiya, N200 on March 31 and N300 on September 30. Joy, N100 on April 1 and N240 on July 1.
The interest on joy's drawing is?

A. N6.00
B. N7.25
C. N9.00
D. N9.75

Question 10:

• JAMB 2000

Use the information below to answer question
Rakiya and Joy are in partnership and agreed that 5% interest per annul is to be charged on drawings. The drawing made by both partners in one year were: Rakiya, N200 on March 31 and N300 on September 30. Joy, N100 on April 1 and N240 on July 1.
Assuming that Rakiya was not credited with any income during the period, what is her closing current account balance?

A. N340,000 credit
B. N349,75 debit
C. N500.00 credit
D. N 511.25 debit