Accounts - Principles of Accounts Past Questions and Answers

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 27:

Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: N40,000, N50,000 and N70,000. 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

Question 28:

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 29:

when shares issued are paid for, accounting entry required is

A Debit bank or cash account and credit share capital and/or premium account
B Credit bank or cash account and debit share capital and/or premium account
C Debit shares account and credit capital account
D Credit shares account and debit capital account

Question 30:

A limited liability company has an authorized share capital of N50 million split into 100 million shares 80 million share was offered for subscription at 60k per share payable in full on application. These have been fully subscribed and issued What is the nominal value of each share?

A N2
B N0.80
C N0.60
D N0.50