Stock and repayment
Creditors and cash in transit
Stock and cash in transit
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
Transfers from the head office to branches are best carried out at__________
Cost price
Cost plus mark up
Selling price
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
Sule 1/3, Ahmed1/3, Khadija 1/3
Sule 1/3, Ahmed1/3, Khadija 1/3
Sule 1/5, Ahmed1/5, Khadija3/5
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
A partnership’s internal regulation are set out by________
A constitution
A law
A deed
An article
Correct answer is C
A partnership deed is a written agreement among the partners specifying rules and regulations and is signed by all the partners and stamped as per stamp act with an aim to prevent possible disputes and disagreements among the partners at future dates.
In the absence of a partnership deed, the act stipulates that____________
An amount should be fixed as salaries for partners
Profits and losses should not be shared equally
Interest on partner’s loan should be 25%
Interest should not be allowed on partners drawings
Correct answer is D
Under the Partnership Act, the following rules will be applied in the absence of an agreement among partners:
i. Profit or losses of the firm will be shared equally by the partners
ii. Interest on capital will not be allowed to any partner.
iii. No interest will be charged on drawings
iv. Interest on loan will be 6% on the loan
v. No salary or remuneration will be allowed to any of the partners
vi. Every partner must take part in the management of the partnership business
vii. The partnership books are kept at the place of business of the partnership and every partner may have access to and inspect and copy any of them.