Jamb Accounts - Principles of Accounts Questions
Question 66:
Which of the following is a strong feature of partnership?
- A The life of the partnership is generally assumed to be indefinite
- B The owners are liable personally for all debts of the business
- C The transfer of ownership interest is frequent and easy to accomplish
- D The partnership is complex to form because of many legal and reporting requirements
Question 67:
Interest on a partner's drawings is debited to the
- A Partners current account and credited to the profit and loss appropriation account
- B Profit and loss appropriation account and credited to the partner's current account
- C Profit and loss account and credited to the partner's current account
- D Partner's current account and credited to the profit and loss account
Question 68:
A partnership on admitting a new member, revalued the business' land and building from N30,000 to N70,00. The difference of N40,000 should be
- A Credited to land and building account
- B Debited to asset revaluation account
- C Credited to asset revaluation account
- D Credited to profit and loss appropriation account
Question 69:
Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu's salary of N3,000 was made.
Halidu's share of the profit is
- A N7,500
- B N6,000
- C N5,400
- D N4,500
Question 70:
Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu's salary of N3,000 was made.
Hamed's share of the profit should be
- A Credited to partners' capital account
- B Credited to partners' current account
- C Credited to appropriation account
- D Debited to partners' drawing account