Accounts - Principles of Accounts Past Questions and Answers

Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu's salary of N3,000 was made.<br/>Hamed's share of the profit should be

A Credited to partners' capital account
B Credited to partners' current account
C Credited to appropriation account
D Debited to partners' drawing account

Question 67:

The conversion of a partners business into a limited liability company affords the

A General partners the chance of enjoying the limited laibility protection
B Limited liability partners the chance of enjoying the limited liability protecction
C Creditors the chance of enjoying the limited liabiity protection
D Debtors the chance of enjoying the limited liability protection

Question 68:

Which of the following ratios gives an idea of the liquidity of a firm?

A Turnover ratio
B Quick ratio
C Debit ratio
D Dividend yield

Question 69:

A total of 400,000 shares of N1 each are to be issued by Sariki company Ltd at a price of N1.20 per share. Application were received for 600,000 shares out of which 100,000 were dishonored. If the available share were distributed pro-rata, what refund will be due a subscriber who applied for 5,000 shares?

A N1,000
B N1,200
C N4,800
D N6,000

Question 70:

The measure of a company's ability to pays its debts quickly is called

A Current ratio
B Turnover ratio
C Acid test ratio
D Return of investment