Partnership Accounts - 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 1994

Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: N40,000, N50,000 and N70,000.
The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for N50,000 cash. Wamo's equity in the resulting partnership is

A. N32,000
B. N40,000
C. N42,000
D. N50,000

Question 3:

• JAMB 1994

Under which of the following conditions is a partnership dissolved?

A. Change of partnership's head office
B. Admission of a new partner
C. Purchase of a large quantity of fixed asset
D. Retirement of a manager who is not a partner

Question 4:

• JAMB 1994

Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: N40,000, N50,000 and N70,000.
The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for N50,000 cash. Wamo's equity in the resulting partnership is

A. N32,000
B. N40,000
C. N42,000
D. N50,000

Question 5:

• 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