Principles Of Accounts 2006 Jamb Examination
Question 31
When goodwill is not retained in the business, the entries in the new partners' book will be to debit?
If goodwill is not to be retained in the partnership books it must be eliminated. The elimination is effected by debiting the partners' capital accounts (in the new profit sharing ratio) and crediting the goodwill account. Therefore the correct entry is to debit partners' capital account and credit goodwill account.
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Question 32
Given:
....................January.............December
Assets................N28,320.............N25,320
Creditors.............N5,620..............N10,320
The proprietor made drawings of N755 per month for personal use.
The profit for the period is?
Change in capital = (Closing assets − Closing liabilities) − (Opening assets − Opening liabilities)
= (25,320 − 10,320) − (28,320 − 5,620) = 15,000 − 22,700 = −7,700.
Total drawings = 755 × 12 = 9,060.
Profit = Change in capital + Drawings = (−7,700) + 9,060 = 1,360.
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Question 33
Given:
Subscriptions received.........N200 000
Subscriptions owed.............N10 000
Subscriptions in advance.......N25 000
Calculate the subscription in the income and expenditure account?
Subscription to be credited to income = Subscriptions received + Subscriptions owed (accrued) − Subscriptions in advance = 200,000 + 10,000 − 25,000 = 185,000.
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Question 34
Boro Limited apportion 1/6 of its rent for factory and 10% of the balance for warehouse. If rent paid is N48 600, how much is paid for warehouse?
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Question 35
MPOBA Club's annual donations from members amount to 112% of its internally generated revenue from the following.
Sales of drinks...................N212 500
Annual dues.......................N112 000
How much is the total receipt of the club?
Internally generated revenue = Sales + Annual dues = 212,500 + 112,000 = 324,500. Donations = 112% of 324,500 = 1.12 × 324,500 = 363,440. Total receipts = internally generated revenue + donations = 324,500 + 363,440 = 687,940.
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Question 36
In converting a to a partnership company, the loss on asset revaluation is?
B
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Question 37
MPOBA Club's annual donations from members amount to 112% of its internally generated revenue from the following.
Sales of drinks...................N212 500
Annual dues.......................N112 000
Determine the opening cash balance of the club?
B. N2 220
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Question 38
| Receipts and Payments Account | # | ||
|---|---|---|---|
| Balance b/d | ? | Rent and rates | 30 000 |
| Subscriptions received | ? | General expenses | 10 000 |
| Gate-fee collections | 50 000 | Electricity | 20 000 |
| Insurance | 150 000 | ||
| Balance c/d | ? |
The subscriptions received represent 80% of total payments and the opening balance is 30% of gate-fee collections. What is the closing cash balance?
C. N5 000
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Question 39
| Receipts and Payments Account | # | ||
|---|---|---|---|
| Balance b/d | ? | Rent and rates | 30 000 |
| Subscriptions received | ? | General expenses | 10 000 |
| Gate-fee collections | 50 000 | Electricity | 20 000 |
| Insurance | 150 000 | ||
| Balance c/d | ? |
The subscriptions received represent 80% of total payments and the opening balance is 30% of gate-fee collections. The subscriptions received would be
B (N240,000).
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Question 40
| # | |
|---|---|
| Motor | 10 000 |
| Fixtures | 5 000 |
| Cash | 2 500 |
| Creditors | 7 000 |
| Loan | ? |
LOAN IS 30% OF CREDITORS. What is the capital balance?
Loan = 30% of creditors = 0.30 × 7,000 = 2,100.