JAMB Accounting Past Questions & Answers - Page 160

796.

Sule and Ahmad are in partnership sharing profits and losses equally. If Khadija is admitted as new partner to take 15 as her share,  what is the new profit or loss sharing ratio?

A.

Sule 1/3, Ahmad 1/3 and Khadija 1/3

B.

Sule 1/5, Ahmad 15 and Khadija 3/5

C.

Sule 2/5, Ahmad 2/5 and Khadija 1/5

D.

Sule 2/5, Ahmad 1/5 and Khadija 2/5

Correct answer is C

Recall that Sule and Ahmed have been sharing profit and losses equally. The admission of Khadija will only reduce the rate of losses and profits shared but will still be equally shared. The new sharing formula would be ;

2/5:25:15

2/5+25+15 = 5/5 = 1

 

797.

Which of the following is a common cause of a discrepancy between head office and branch trial balance?

A.

Debtors and cash in transit

B.

Creditors and cash in transit

C.

Stock and cash in transit

D.

Stock and prepayments

Correct answer is A

No explanation has been provided for this answer.

798.

One of the purposes of maintaining the account of a branch at the head office is to?

A.

Record charges in shareholdings

B.

Record charges in liabilities

C.

Check the excesses of customers

D.

Check and monitor the growth of individual branches

Correct answer is D

The primary objectives of branch accounting are better accountability and control since profitability and efficiency can be closely tracked for individual locations.