When shares issued are paid for, accounting entry required is
Debit bank or cash account and credit share capital and/or premium account
Credit bank or cash account and debit share capital and/or premium account
Debit shares account and credit capital account
Credit shares account and debit capital account
Correct answer is A
No explanation has been provided for this answer.
Under which of the following conditions is a partnership dissolved?
Change of partnership's head office
Admission of a new partner
Purchase of a large quantity of fixed asset
Retirement of a manager who is not a partner
Correct answer is B
No explanation has been provided for this answer.
N32,000
N40,000
N42,000
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.
Goodwill appears in the books of a business only if it has been
Purchased at a certain price
Raised in connection with the admission of a new partner
Raised to account for the true value of a business on the death of a partner
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.
Drawings account
Appropriation account
Capital account
Creditors account
Correct answer is B
No explanation has been provided for this answer.