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.

3,012.

When shares issued are paid for, accounting entry required is

A.

Debit bank or cash account and credit share capital and/or premium account

B.

Credit bank or cash account and debit share capital and/or premium account

C.

Debit shares account and credit capital account

D.

Credit shares account and debit capital account

Correct answer is A

No explanation has been provided for this answer.

3,013.

Under which of the following conditions is a partnership dissolved?

A.

Change of partnership's head office

B.

Admission of a new partner

C.

Purchase of a large quantity of fixed asset

D.

Retirement of a manager who is not a partner

Correct answer is B

No explanation has been provided for this answer.

3,014.

Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: N40,000, N50,000 and N70,000.
The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for N50,000 cash. Wamo's equity in the resulting partnership is

A.

N32,000

B.

N40,000

C.

N42,000

D.

N50,000

Correct answer is D

Equity is the same as capital. This is funds paid into a business by investors in exchange for common or preferred stock.

50,000 is Wamo's equity contribution.

 

3,015.

Goodwill appears in the books of a business only if it has been

A.

Purchased at a certain price

B.

Raised in connection with the admission of a new partner

C.

Raised to account for the true value of a business on the death of a partner

D.

Raised in order to prevent the balance sheet showing that the business is insolvent

Correct answer is B

No explanation has been provided for this answer.