Treatment of goodwill - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 2004

The accounting entry to record the premium on goodwill is to debit?

A. Cash and credit old partners' capital
B. Goddwill and credit revaluation
C. Assets and credit capital
D. Capital and credit assets

Question 7:

• JAMB 2006

When goodwill is not retained in the business, the entries in the new partners' book will be to debit?

A. Good account and credit partners' capital account
B. Partners' capital account and credit goodwill account
C. Cash account and credit goodwill account
D. Goodwill account and credit cash account

Question 8:

• JAMB 2007

Osei and Yabo were in partnership sharing profits and losses in the ratio of 2:3. On admitting Takwa, the profit and loss sharing ratio was charged to 1:1:1. Suppose Takwa paid N30 000 for goodwill , this amount would be?

A. Credited to Takwa's current acount
B. Debited to goodwill account
C. Share to all the partners' capital account
D. Credited to the old partners' capital account

Question 9:

• JAMB 2008

Goodwill can be in the balance sheet as?

A. Fixed tangible asset
B. Current asset
C. Fictitious asset
D. Liquid asset

Question 10:

• JAMB 2011

Goodwill is determined using?

A. Capital contribution
B. Number of partnerd admitted
C. The business and customer relations
D. Number of active partners