Formation of partnership - 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 1995

Which of the following is a strong feature of partnership?

A. The life of the partnership is generally assumed to be indefinite
B. The owners are liable personally for all debts of the business
C. The transfer of ownership interest is frequent and easy to accomplish
D. The partnership is complex to form because of many legal and reporting requirements

Question 3:

• JAMB 1998

Which of the following indicate that a partnership business is in place?
(i) There is a business
(ii)It is run commonly by partners
(iii)It has profit-making in view
(iv) Partners' liability is limited

A. I and ii only
B. I, ii and iii only
C. I, iii and iv only
D. Ii, iii and iv only

Question 4:

• JAMB 2000

The Partnership Deed normally specifies?

A. How profit 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

Question 5:

• JAMB 2007

(i) Profits and looses will be shared unequally.
(ii) Interest is not allowed on capital.
(iii) Salaries are not allowed.
(iv) Interest is charged on drawings.
From the above, which of the following would apply where there is no agreement during partnership formation?

A. I only
B. I, ii and iii
C. I, ii and iv
D. Ii and iii