JAMB Accounting Past Questions & Answers - Page 273

1,361.

Under which of the following conditions is a partnership dissolved?

A.

Change of partnership's head office

B.

Admission of a new partner

C.

Purchase of a large quantity of fixed asset

D.

Retirement of a manager who is not a partner

Correct answer is B

No explanation has been provided for this answer.

1,362.

Kayode, Akpan and Kachalla are in partnership. Their respective capital accounts had the following balances: N40,000, N50,000 and N70,000.
The partners agree to admit Wamo as a new partner with a one-fifth interest in the partnership capital in exchange for N50,000 cash. Wamo's equity in the resulting partnership is

A.

N32,000

B.

N40,000

C.

N42,000

D.

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.

 

1,363.

Goodwill appears in the books of a business only if it has been

A.

Purchased at a certain price

B.

Raised in connection with the admission of a new partner

C.

Raised to account for the true value of a business on the death of a partner

D.

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.

1,364.

The major distinguishing element between the final accounts of a partnership and a sole trader is the

A.

Drawings account

B.

Appropriation account

C.

Capital account

D.

Creditors account

Correct answer is B

No explanation has been provided for this answer.

1,365.

The net profit from a trading account of a non-profit making organization would be treated as income in the

A.

Income and expenditure account

B.

Receipt and payment account

C.

Balance sheet

D.

Statement of affairs

Correct answer is A

No explanation has been provided for this answer.