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

Question 36:

• JAMB 2003

For the purpose of conversion of a partnership to a company, a total purchase consideration of N3.6m was paid. If 30% of the purchase consideration was in cash and the rest by 50k shares, how many shares issued?

A. N1080 000
B. N2 160 000
C. N3 600 000
D. N5 040 000

Question 37:

• JAMB 2004

On dissolution, the final distribution of cash to partners is based on?

A. Patnership agreement
B. Articles os asssociation
C. Goodwill
D. Capital balances

Question 38:

• JAMB 2004

Use the information below to answer questions 39 and 40.
Jumoke and Kunle have an original investment of N25,000 and N15,000 respectively in a partnership. The articles of partnership provides 3% interest on capital and salaries of N1,500 and N1,000 respectively for the partners. The profits and losses are to be shared in the ratio 3:2.
Miscellaneous expenses of N2,500 were incurred with gross profit of N6,500 during the financial year.
The balance of profit and loss account will be?

A. N4,000
B. N2,800
C. N1,500
D. 300

Question 39:

• JAMB 2004

What is Kunle's share of the profit?

A. N600
B. N300
C. N180
D. N120

Question 40:

• JAMB 2004

When a new partner is admitted to a partnership, there is a need to revalue the?

A. Capital of the business
B. Capital and liabilities of the business
C. Assets and capital of the business
D. Assets and liabilities of the business