Accounting questions and answers

Accounting Questions and Answers

If you are preparing for an accounting aptitude test or even a job interview, these accounting questions and answers will help you master the principles of accounting. This test covers accounting past questions from WAEC, JAMB, Post UTME exams and many more.

786.

In preparing partnership accounts, interest on drawings is debited to current accounts and credited to

A.

Capital account

B.

Appropriation account

C.

Drawings account

D.

Profit and loss account

Correct answer is B

Interest on drawings is an income to the firm, and hence it is credited to the profit and loss appropriation account. On the other hand, interest on drawings is an expense to the partners, and hence it is debited to their capital accounts and credited to appropriation.

790.

In the absence of a partnership agreement, additional capital contributions by partners attract interest of

A.

5%

B.

10%

C.

12%

D.

15%

Correct answer is A

In the Absent of  an agreement, the partners will share profits and losses equally. If an agreement exists, partners divide profits based on the terms specified. Any reason can be used as the basis for establishing a profit-sharing ratio, but the two main factors are responsibility and capital contributions. Additional capital contributed attracts a 5% interest in the absence of a partnership agreement