Jamb Accounting Past Questions For Year 1994
Question 21
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
Question 22
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
Question 23
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
Question 24
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
Question 25
The major difference between the receipt and payment account and the income and expenditure account is that while the former
- A. is kept by the treasurer, the latter is not
- B. deals with all receipts and payments in the year regardless of the time it relates to, the latter is for just that year
- C. is a T-account, the latter is not
- D. is not in the ledger, the latter is
