JAMB Accounting Past Questions & Answers - Page 278

1,386.

A partnership on admitting a new member, revalued the business' land and building from N30,000 to N70,00. The difference of N40,000 should be

A.

Credited to land and building account

B.

Debited to asset revaluation account

C.

Credited to asset revaluation account

D.

Credited to profit and loss appropriation account

Correct answer is B

No explanation has been provided for this answer.

1,387.

Interest on a partner's drawings is debited to the

A.

Partners current account and credited to the profit and loss appropriation account

B.

Profit and loss appropriation account and credited to the partner's current account

C.

Profit and loss account and credited to the partner's current account

D.

Partner's current account and credited to the profit and loss account

Correct answer is A

No explanation has been provided for this answer.

1,388.

Which of the following is a strong feature of partnership?

A.

The life of the partnership is generally assumed to be indefinite

B.

The owners are liable personally for all debts of the business

C.

The transfer of ownership interest is frequent and easy to accomplish

D.

The partnership is complex to form because of many legal and reporting requirements

Correct answer is B

No explanation has been provided for this answer.

1,390.

Where a non-profit making organization prepares the account using accruals basis of reporting, the statement showing how well the organization is doing is the

A.

Appropriation account

B.

Balance sheet

C.

Income and expenditure account

D.

Receipts and payment account

Correct answer is C

No explanation has been provided for this answer.