Accounts - Principles of Accounts Past Questions and Answers

In a partnership goodwill is recognized when

A A new partner is admitted
B A partner is dormant
C The business is making huge profit
D The business has good customer relations
E It is a limited partnership

Question 1662:

Which of the following is a normal account?

A Machinery
B Debtors
C Creditors
D Salaries
E Goodwill

Question 1663:

Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
The net book value at the time of sale was

A N16,000
B N14,000
C N12,000
D N8,000
E N6,000

Question 1664:

Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
Accumulated depreciation at the time of sale was

A N16,000
B N14,000
C N12,000
D N8,000
E N6,000

Question 1665:

Use the following information to answer this question
An asset was bought on 1st January, 1992 for N20,000. Depreciation was provided for annually at 20% on cost. It was sold for N7,000 on 1st July, 1995.
The profit on sale was

A N8.00
B N7,000
C N6,000
D N5,000
E N1,000