Jamb Accounting Past Questions For Year 1999
Question 26
If a sole proprietorship is purchased for cash, then?
- A. the purchaser debits his business purchase account with the consideration he pays
- B. all assets and liabilities must be bought
- C. goodwill results where value of assets
- D. the vendor debits his business purchase account with the considerstion he receives
Question 27
Dele and Seun who are in partnership, have decided to covert their business into a limited liability company where both become directors. To convert the business?
- A. they will simply continue since there are no new members
- B. the partnership is formally ended and new company books opened
- C. the shares and all other items will be shared equally and not in their former ratios
- D. computation of goodwill must be done as it is legally required
Question 28
When a partner makes a drawing of stock items from a partnership, the accounting impact of the drawing is to increase the partner's?
- A. goodwill account balance
- B. current account credit balance
- C. current account debit balance
- D. profit and loss credit balance
Question 29
As part of the initial investment, a partner contributes office equipment that originally cost N20,000 and on which provision for depreciation of N12,500 had been recorded. If the partners agree on a valuation of N9,000 for the equipment, what amount should be debited to the office equipment account?
- A. N7,500
- B. N9,000
- C. N12,500
- D. N20,000
Question 30
The best method of allocating expenses among departments is to?
- A. allocate expenses to each department in proportion to the sales of that department
- B. charge against each department those costs which are within its control
- C. charge expenses against each department in proportion to the purchases of that department
- D. allocate expenses to each section of the department in relation to the number of people
