In a non-profit making organisation, the excess of Assets over liabilities equals
Capital
Capital employed
Capital owned
Accumulated funds
Correct answer is D
The excess of the assets over the liabilities of a non-profit making concern is called Accumulated Fund. It is the capital of a non-profit making association. In order to ascertain the accumulated fund, a statement of affairs will be prepared.
Where there is no agreement made by the partners, the following provisions takes place except
No salary for partners acting in the business
There is interest on capital
No interest to be charged on drawings
Profit and loss are to be shared equally
Correct answer is B
According to section 24 of the partnership Act 1890. If no specific agreement is made by the partners, the following takes place:
1. No partners may introduce a new person without the consent of all other partners 2.5% interest a year on loans made by partner e.t.c
Use the following information to answer this question
| Year | ₦ |
| 1991 1992 1993 1994 |
14,000 24,000 10,000 16,000 |
It has been decided to value goodwill at 2 years purchase of average profit for the past 4 years. The value of goodwill is
32,000
16,000
30,000
64,000
Correct answer is B
| Average | profit | = | 14,000 + 24,000 + 10,000 + 16,000
4 |
| = | 64,000
4 |
= | ₦16,000 |
Shares that are offered to existing shareholders at a price is called
Par
Premium
Right issue
Bonus issue
Correct answer is C
Right issue are offered to existing shareholders in a company.
An ordinary share of ₦100 was issued at ₦80. The share was issued at
Premium
Par
Discount
Loss
Correct answer is C
Share issued at discount is a situation whereby shares are quoted below the nominal value.