JAMB Accounting Past Questions & Answers - Page 265

1,321.

Halidu and Hamed are business partners with N30,000 and N20,000 capital respectively. At the end of the financial year, a profit of N12,000, which included Halidu's salary of N3,000 was made.
Hamed's share of the profit should be

A.

Credited to partners' capital account

B.

Credited to partners' current account

C.

Credited to appropriation account

D.

Debited to partners' drawing account

Correct answer is B

No explanation has been provided for this answer.

1,323.

A partnership on admitting a new member, revalued the business' land and building from N30,000 to N70,00. The difference of N40,000 should be

A.

Credited to land and building account

B.

Debited to asset revaluation account

C.

Credited to asset revaluation account

D.

Credited to profit and loss appropriation account

Correct answer is B

No explanation has been provided for this answer.

1,324.

Interest on a partner's drawings is debited to the

A.

Partners current account and credited to the profit and loss appropriation account

B.

Profit and loss appropriation account and credited to the partner's current account

C.

Profit and loss account and credited to the partner's current account

D.

Partner's current account and credited to the profit and loss account

Correct answer is A

No explanation has been provided for this answer.

1,325.

Which of the following is a strong feature of partnership?

A.

The life of the partnership is generally assumed to be indefinite

B.

The owners are liable personally for all debts of the business

C.

The transfer of ownership interest is frequent and easy to accomplish

D.

The partnership is complex to form because of many legal and reporting requirements

Correct answer is B

No explanation has been provided for this answer.