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

Question 111:

• JAMB 2018

Why should a new partner contribute towards goodwill on his admission?

A. It is a norm
B. To ensure new partner also have a stake in the business
C. The firm into which he is entering already has some goodwill in the market
D. To purchase the business

Question 112:

• JAMB 2018

Use the information to answer the questions

Rakiya and joy are in a partnership and agreed that 5% interest per annum is to be charged on drawings. The drawing made by both partners in one year were:

Rakiya, #200 on March 31 and #300 on September 30.

Joy, #100 on April 1 and #240 on July 1.

The interest on Joy’s drawing is___________

A. #511.25 debit
B. #500.00 credit
C. #349.75 debit
D. #340.00 credit

Question 113:

• JAMB 2018

Tea and Cup are into a partnership business. Interests on drawings made by partners are at 10% per annum. Tea’s capital is ₦70000 and current balance is ₦50000. He withdrew the following amounts during the year : 3000 on 31st January , 2000 on 31st March, 4000 on 1st July, 1500 on the 30th September, 2500 on 1st November. Cup’s capital is ₦100000 and current balance is ₦40000. He made no drawings during the period. what is the closing balance in Tea’s current account

A. 36,925Cr
B. 40,000Cr
C. 50,000Dr
D. 36,295Dr

Question 114:

• 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

Question 115:

• JAMB 2018

The partnership deed normally specifies?

A. How profits or losses are to be shared
B. The capital to be contributed annually
C. How salaries are paid to employees
D. The profit that should be earned annually