Accounts - Principles of Accounts Past Questions and Answers

Which of the following methods of invoicing goods to branches facilitate easy checks on the activities of branches?

A Cost price
B Fixed percentage on cost
C Selling price
D Invoice price

Question 867:

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.
Find Modibbo's share of the profit

A #62,000
B #48,000
C #44,000
D #43,000

Question 868:

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

Question 869:

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 870:

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