Admission/retirement of a partner - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 1:

• JAMB 1994

The term "accounting period" is used to refer to the

A. Time span during which taxes are paid to the inland revenue board
B. Budget period, usually one year, relied on by the accountant
C. Time span, usually one year, covered by financial statement
D. Period within which debtors are expected to settle accounts

Question 2:

• 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

Question 3:

• JAMB 2011

Which of the following can be used on admission of a new partnership?

A. Revaluation account
B. Profit account
C. Capital account
D. Trading account

Question 4:

• JAMB 2012

Ngozi and Musa with a capital of #30,000 each decide to admit Mary into the partnership business with a capital of #20,000 and goodwill #15,000.If the profits and losses are to be shared equally, the journal entries to record goodwill are

A. Debit goodwill #15,000, cash #20,000 and credit Mary's capital #35,000
B. Credit goodwill #15,000, cash #20,000 and debit Mary's #35,000
C. Debit goodwill #15,000, credit cash #20,000 and credit Mary's capital #20,000
D. Debit old partners capital #15,000, credit cash #20,000 and Mary's capital #35,000

Question 5:

• 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