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

Question 16:

• JAMB 1998

Which of the following is an intangible asset and a measure of a firm's superior earning power?

A. Patent
B. Goodwill
C. Trademark
D. Right issue

Question 17:

• 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 18:

• 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 19:

• JAMB 1999

Goodwill can be valued in partnership when?

A. A partners make profits
B. Large losses are made
C. A partner retires
D. A new branch is opened

Question 20:

• JAMB 1999

As part of the initial investment, a partner contributes office equipment that originally cost N20,000 and on which provision for depreciation of N12,500 had been recorded. If the partners agree on a valuation of N9,000 for the equipment, what amount should be debited to the office equipment account?

A. N7,500
B. N9,000
C. N12,500
D. N20,000