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

Question 101:

• JAMB 2018

When goodwill is not retained in the business, the entries in the new partners books will be to debit______________

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

Question 102:

• JAMB 2018

Ade, Tony, Rose share profit and losses in the ratio of 3 : 2 : 1 respectively. Ade retires and the remaining partners decide to take Ade’s share in the existing ratio. What is the new ratio?

A. 1 : 1
B. 3 : 6
C. 2 : 1
D. 2 : 6

Question 103:

• JAMB 2018

Profit or loss in a partnership is usually arrived at after deducting from gross profit all expenses including____________

A. Partners salaries
B. Interest on capital
C. Interest on loans
D. Partners drawings

Question 104:

• JAMB 2018

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

A. Bonus
B. Good will
C. Premium
D. Commission

Question 105:

• JAMB 2018

What act generally includes completing unfinished partnership business, collecting and paying debts, collecting partnership assets to be turned into cash and taking inventory?

A. Formation
B. Dissolution
C. Winding up
D. Termination