Accounts - Principles of Accounts Past Questions and Answers

The partners capital are: Modibbo #60,000
and Jakata #90,000. The partners share
profit and losses in the ratio of their capital
contributions.
The net profit for the year is #12,000.
What is Jakata's sharing profit?

A 3:5
B 1:2
C 2:5
D 1:5

Question 32:

In what way can goodwill be written off in a partnership business?

A Using the partners' profit and loss sharing ratio
B By neglecting the ratio of partners capital contributions
C By sharing it unequally among the partners where no agreement exists
D By sharing it among the active partners only

Question 33:

Ngozi and Musa with a capital of #30,000 each decide to admit Mary into the partnership business with a capital of #20,000 and goodwill #15,000.If the profits and losses are to be shared equally, the journal entries to record goodwill are

A Debit goodwill #15,000, cash #20,000 and credit Mary's capital #35,000
B Credit goodwill #15,000, cash #20,000 and debit Mary's #35,000
C Debit goodwill #15,000, credit cash #20,000 and credit Mary's capital #20,000
D Debit old partners capital #15,000, credit cash #20,000 and Mary's capital #35,000

Question 34:

In converting a partnership into a limited liability company, the necessary accounts to be opened in the books of the company are

A Business purchase account and ordinary share capital account
B Business purchase account, vendor account and ordinary share capital account
C Business purchase account and vendor account
D Ordinary share capital account, vendor account and unpaid share capital account

Question 35:

Given:
1. The Memorandum of Association of the Company
11.The Article of Association of the Company
111. The Incorporation documents
From the above, which of the following is delivered to the Registrar of companies for incorporation

A 1 and 11
B 1, 11 and 111
C 1 and 111
D 11 and 111