JAMB Accounting Past Questions & Answers - Page 237

1,181.

Where a company acquires controlling shares of another and the consideration is paid in cash, the entries in the books of the purchases are debit?

A.

Investment and credit cash

B.

Investment and credit shares

C.

Purchases and credit cash

D.

Purchases and credit shares

Correct answer is C

No explanation has been provided for this answer.

1,182.

Bala Ltd acquired the business of Bello Ltd and caused the separate existence of the latter company to terminate. This situation is best described as?

A.

Absorption

B.

Merger

C.

Conversion

D.

Dissolution

Correct answer is A

No explanation has been provided for this answer.

1,183.

On the dissolution of a partnership business,the net book value of the assets is transferred to?

A.

Debit of realization account

B.

Credit of realization account

C.

Credit of bank account

D.

Debit of bank account

Correct answer is B

No explanation has been provided for this answer.

1,184.

If a partner pays a premium of N500 for 1/5 share of profit, then the total value of goodwill is?

A.

N500

B.

N2,000

C.

N2,500

D.

N3,000

Correct answer is A

No explanation has been provided for this answer.