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Accounts - Principles of Accounts 2012 JAMB Past Questions

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31

In what way can goodwill be written off in a partnership business?

  • A. Using the partners' profit and loss sharing ratio
  • B. By neglecting the ratio of partners capital contributions
  • C. By sharing it unequally among the partners where no agreement exists
  • D. By sharing it among the active partners only
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32

Ngozi and Musa with a capital of #30,000 each decide to admit Mary into the partnership business with a capital of #20,000 and goodwill #15,000.If the profits and losses are to be shared equally, the journal entries to record goodwill are

  • A. debit goodwill #15,000, cash #20,000 and credit Mary's capital #35,000
  • B. credit goodwill #15,000, cash #20,000 and debit Mary's #35,000
  • C. debit goodwill #15,000, credit cash #20,000 and credit Mary's capital #20,000
  • D. debit old partners capital #15,000, credit cash #20,000 and Mary's capital #35,000
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33
In converting a partnership into a limited liability company, the necessary accounts to be opened in the books of the company are
  • A. business purchase account and ordinary share capital account
  • B. Business purchase account, vendor account and ordinary share capital account
  • C. business purchase account and vendor account
  • D. ordinary share capital account, vendor account and unpaid share capital account
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34

Given:
1. The Memorandum of Association of the Company
11.The Article of Association of the Company
111. The Incorporation documents

From the above, which of the following is delivered to the Registrar of companies for incorporation

  • A. 1 and 11
  • B. 1, 11 and 111
  • C. 1 and 111
  • D. 11 and 111
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35

When shares are oversubscribed and money returned to unsuccessful applicants, the entry to record such money is to debit

  • A. application and allotment account and credit unsubscribed shares
  • B. application and allotment account and credit cash
  • C. oversubscribed shares and credit allotment account
  • D. oversubscribed shares and credit allotment account
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