JAMB Accounting Past Questions & Answers - Page 151

751.

The rules which govern the internal management of a firm and its financial affairs in a partnership business is a?

A.

Memorandum

B.

Bye-law

C.

Deed

D.

Financial regulation

Correct answer is C

A partnership deed, also known as a partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation. 


 

752.

The salary of a partner is usually debited to the?

A.

Sundry debtors account

B.

Appropriation account

C.

Profit and loss account

D.

Sundry current account

Correct answer is B

A partnership appropriation account is an intermediary account between the profit and loss account of the partnership and the individual capital accounts of each partner. The adjustments include such items as partner salaries and interest on partner capital, loans and drawings accounts

 

753.

Which of the following is mostly used in treating partner's current earnings?

A.

Savings account

B.

Current account

C.

Capital account

D.

Share capital account

Correct answer is B

Current account of partners is also a type of Capital Account. So if there is a debit balance in Current Account, it means a loan give to the Partner by the Firm.

754.

Goods returned to branch by customers is recorded in the head office books be debiting?

A.

Bank account and crediting branch stock account

B.

Goods sent to branch account and crediting branch debtors' account

C.

Branch stock account and crediting branch debtors account

D.

Branch debtors and credting cash accounts

Correct answer is C

By debiting branch stock account and crediting branch debtors account.

755.

The branch expenses paid by the head office is recorded in the books by debiting branch?

A.

Bad debt account and crediting branch debtor's account

B.

Expenses account and crediting bank account

C.

Profit and loss account and crediting branch stock account

D.

Discount allowed account and crediting branch debtors' account

Correct answer is B

Branch current account; This account is maintained in the head office books to record all transactions between head office and branchThis account is debited with the following

  • Goods sent to branch
  • Expenses of the branch paid by the head office
  • Profit of the branch

From the above explanation, we would debit expenses account and crediting the bank account.