Accounting questions and answers

Accounting Questions and Answers

If you are preparing for an accounting aptitude test or even a job interview, these accounting questions and answers will help you master the principles of accounting. This test covers accounting past questions from WAEC, JAMB, Post UTME exams and many more.

577.

Why should a new partner contribute towards goodwill on his admission?

A.

It is a norm

B.

To ensure new partner also have a stake in the business

C.

The firm into which he is entering already has some goodwill in the market

D.

To purchase the business

Correct answer is C

Goodwill is being paid by a new partner because the partnership he is entering into already has goodwill in the market as well as to pay for the portion sacrificed by existing partners in form to their profit to admit the new partner.

578.

Which of the following is a common cause of a discrepancy between head office and branch trial office_______

A.

Stock and repayment

B.

Creditors and cash in transit

C.

Stock and cash in transit

D.

Debtors and cash in transit

Correct answer is C

Goods in transit are goods sent by the head office to branch but by the close of financial year, these goods have not yet reached the branch.

  Cash in transit are cash remitted by the branch to head office by the end of the financial year this cash has not yet reached the head office

  Another major cause of discrepancy is returns in transit. This is the returns by the branch to head office but by the end of the year, they have not been received by the head office

579.

Transfers from the head office to branches are best carried out at__________

A.

Cost price

B.

Cost plus mark up

C.

Selling price

D.

Market price

Correct answer is B

Goods are transferred from head office to branch at cost price, selling price and cost price plus mark up

 

580.

Sule and Ahmed are in partnership sharing profit and losses equally. If Khadija is admitted as a new partner to take 1/5 th as her share. What is the new profit or loss sharing?

A.

Sule 1/3, Ahmed1/3, Khadija 1/3

B.

Sule 1/3, Ahmed1/3, Khadija 1/3

C.

Sule 1/5, Ahmed1/5, Khadija3/5

D.

Sule 2/5, Ahmed1/5, Khadija2/5

Correct answer is B

If Khadija is to take 1/5th i.e. 20%

  Sule and Ahmed are to share 80% (100% - 20%) equally

  Sule = 2/5

  Ahmed = 2/5

  Khadija = 1/5