JAMB Accounting Past Questions & Answers - Page 143

711.

The transactions relating to liquidation in partnership account is drawn by using?

A.

Current account

B.

Cash account

C.

Capital account

D.

Realization account

Correct answer is C


If the partnership decides to liquidate, the assets of the partnership are sold, liabilities are paid off, and any remaining cash is distributed to the partners according to their capital account balances. If a partner's capital account has a deficit balance, that partner should contribute the amount of the deficit to the partnership.

712.

The major objective of departmental accounts is to ascertain the?

A.

Contribution of each department to profit

B.

Materials sold in each department

C.

Insurance premium payable on employees

D.

Number of employees in each department

Correct answer is A

No explanation has been provided for this answer.

713.

The capital of not-for-profit-making organization is referred to as?

A.

Entity fund

B.

Capital owned

C.

Accumulated fund

D.

Capital employed

Correct answer is C

No explanation has been provided for this answer.

714.

The subscription paid in advance is treated in the balance sheet of a club as?

A.

A surplus

B.

A liability

C.

A deflicit

D.

An asset

Correct answer is B

No explanation has been provided for this answer.

715.

The major festure of not-for-profit-making-organization is that they are formed?

A.

To use accumulated fund to described the net amount owed to members

B.

Mainly to improve the welfare of her member

C.

To engaged in trading activities to sponsor its activities

D.

In order to compute the receipts and payment account

Correct answer is B

No explanation has been provided for this answer.