Formation and classification of companies - Jamb Accounts - Principles of Accounts Past Questions and Answers

Question 6:

• JAMB 1999

Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?

A. They will simply continue since there are no new members
B. The partnership is formally ended and new company books opened
C. The shares and all other items will be shared equally and not in their former ratios
D. Computation of goodwill must be done as it is legally required

Question 7:

• JAMB 2001

Bala Ltd acquired the business of Bello Ltd and caused the separate existence of the latter company to terminate. This situation is best described as?

A. Absorption
B. Merger
C. Conversion
D. Dissolution

Question 8:

• JAMB 2001

The law that currently regulates the registration of companies in Nigeria is the?

A. Constitution of the Federal Republic of Nigeria, 1999
B. Nigeria Enterprises Promotion Decree, 1972
C. Companies and Allied Matters Decree, 1990
D. Companies Decree, 1968

Question 9:

• JAMB 2003

Use the information to answer this question.
..............ZEBRA PLC..............
.............Balance sheet as at 31st March, 2002
...............N...............N............N......
Capital......100,000...Fixed assets:
Current................Land &..................
Liabilities...........buildings..50,000......
Creditors........30000..Furniture..10,000....60,000
.......................Current..................
.......................Assets: .......
..................Stock .........30,000...........
..................Debtors.......30,000.............
..................Cash..........10,000......70,000..
.............130,000.........................130,000
The business was acquired on 1st April, 2002 at a purchase consideration of N120,000 by SOZ. All assets and liabilities were taken over except the cash to open the new firm's bank account additional N20,000 was paid into the bank.
Calculate the network of the business

A. N120,000
B. N90,000
C. N80,000
D. N30,000

Question 10:

• JAMB 2006

A private company is different from a public company because?

A. It does not restrict the right to transferits shares
B. It cannot invite members of the public to subscribe for its shares
C. Its shares are owned by one person
D. It can only offer its shares to members of the publicfor subscription