Dissolution 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 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 3:

• JAMB 1994

The expenditure on a good or services which is consumed either immediately or within a current accounting period is called

A. Fixed expenditure
B. Capital expenditure
C. Annual expenditure
D. Recurrent expenditure

Question 4:

• JAMB 1997

On partnership dissolution, if a partner's capital account has a debit balance and the partnr is insolvent, the deficiency will, in accordance with the decision of the case of Garner v Murray, be

A. Borne by all the partners
B. Borne by the insolvent partner
C. Written off
D. Borne by the solvent partners

Question 5:

• JAMB 2001

On the dissolution of a partnership business,the net book value of the assets is transferred to?

A. Debit of realization account
B. Credit of realization account
C. Credit of bank account
D. Debit of bank account