Accounts - Principles of Accounts Past Questions and Answers

A credit balance on a receipt and payments account indicates that the non-profit making organization?

A Had more revenues than expenses during the period
B Did not owe much liabilities during the period
C Received more cash than it paid out during the period
D Made more cash payments than it received during the period

Question 27:

Goodwill can be valued in partnership when?

A A partners make profits
B Large losses are made
C A partner retires
D A new branch is opened

Question 28:

As part of the initial investment, a partner contributes office equipment that originally cost N20,000 and on which provision for depreciation of N12,500 had been recorded. If the partners agree on a valuation of N9,000 for the equipment, what amount should be debited to the office equipment account?

A N7,500
B N9,000
C N12,500
D N20,000

Question 29:

When a partner makes a drawing of stock items from a partnership, the accounting impact of the drawing is to increase the partner's?

A Goodwill account balance
B Current account credit balance
C Current account debit balance
D Profit and loss credit balance

Question 30:

Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?

A They will simply continue since there are no new members
B The partnership is formally ended and new company books opened
C The shares and all other items will be shared equally and not in their former ratios
D Computation of goodwill must be done as it is legally required