Post Utme Accounts - Principles of Accounts Past Questions and Answers

Question 71:

A partnership on admitting a new
member, revalued the business' land and building from ₦30,000 to ₦70,000. The difference of ₦40,000 should be ____

A. Credited to land and building account
B. Debited to asset revaluation account
C. Credited to asset revaluation account
D. Credited to profit and loss appropriate account.

Question 72:

Adamu, Babaji and Chukwu are in a partnership and they share profit and losses on ratio 3:2:1. Their respective capitals are ₦20,000, ₦15,000, ₦5,000 on which they are entitled to interest at 5% per annum. The profit for the year before charging interest on capital amounts to ₦5,500. Calculate the profit for Adamu.

A. ₦583
B. ₦1,000
C. ₦1,167
D. ₦1,750

Question 73:

In a partnership business, the net profit serves as opening figure for ____

A. Trading account
B. Profit and loss account
C. Current account
D. Appropriation account

Question 74:

In the absence of a partnership
agreement, profits and losses are shared ____

A. In the ratio of capital
B. Equally
C. In the ratio of drawings
D. According to services rendered

Question 75:

Interest on a partner's drawings is
debited to the ____

A. Partner's current account and credited to the profit and loss appropriate account
B. Profit and loss appropriation account and credited to the partner's current account
C. Profit and loss account and credited to the partner's account
D. Partner's current account and credited to the profit and loss account.