Accounts - Principles of Accounts Past Questions and Answers

The major difference between the receipt and payment account and the income and expenditure account is that while the former

A Is kept by the treasurer, the latter is not
B Deals with all receipts and payments in the year regardless of the time it relates to, the latter is for just that year
C Is a T-account, the latter is not
D Is not in the ledger, the latter is

Question 22:

The net profit from a trading account of a non-profit making organization would be treated as income in the

A Income and expenditure account
B Receipt and payment account
C Balance sheet
D Statement of affairs

Question 23:

The major distinguishing element between the final accounts of a partnership and a sole trader is the

A Drawings account
B Appropriation account
C Capital account
D Creditors account

Question 24:

Goodwill appears in the books of a business only if it has been

A Purchased at a certain price
B Raised in connection with the admission of a new partner
C Raised to account for the true value of a business on the death of a partner
D Raised in order to prevent the balance sheet showing that the business is insolvent

Question 25:

Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: N40,000, N50,000 and N70,000.<br/>The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for N50,000 cash. Wamo's equity in the resulting partnership is

A N32,000
B N40,000
C N42,000
D N50,000