2023 - JAMB Accounting Past Questions and Answers - page 5

Changes in the profit-sharing ratio in a partnership can occur due to several reasons:

I. Skill contributed by partners: When partners bring different skills, experience, or expertise to the partnership, it can lead to a change in the profit-sharing ratio. For example, if one partner significantly increases their contribution in terms of skills, they may be entitled to a higher share of the profits.

II. Health status: The health status of a partner may not directly lead to a change in the profit-sharing ratio. Generally, health status does not affect the distribution of profits among partners unless it prevents a partner from actively participating in the business, in which case a change in the ratio might occur.

III. Old age: Old age alone doesn't typically lead to a change in the profit-sharing ratio. However, if an older partner decides to reduce their involvement in the business or retire, it could result in a change in the profit-sharing arrangement.

IV. Intangible asset increase: An increase in intangible assets, such as patents, trademarks, or intellectual property, can potentially lead to a change in the profit-sharing ratio. If a partner contributes significantly to the acquisition or development of such assets, they may be entitled to a larger share of the profits generated from them.

Therefore, options I, II, and IV are the factors that can lead to changes in the profit-sharing ratio.

An evidence of payment issued to a government ministry by a revenue collector is typically known as a "treasury receipt." This receipt serves as proof that a payment has been made to the government, and it is an important document in financial transactions with government agencies.

The folio column of the journal records the 'particulars of transactions.' It is used to reference the ledger accounts where the transaction is posted.

The item that is not charged to the manufacturing account is 'distribution expenses.' Distribution expenses are not considered part of the manufacturing costs but are related to selling and delivering the finished goods.

Goodwill = Purchase consideration - Value of assetsTotal value of assets = 190,000 + 170,000 + 60,000 - (50,000)= 370,000Hence, goodwill = 400,000 - 370,000= ₦30,000

To calculate the value of indirect manufacturing cost, you need to add up the following expenses:
1. Factory rent: ₦880
2. Depreciation of Plants and Machinery: ₦800
3. Royalties: ₦300
4. Indirect wages: ₦18,000
5. General indirect expenses: ₦620

Adding these values together:
₦880 + ₦800 + ₦300 + ₦18,000 + ₦620 = ₦20,300

So, the value of the indirect manufacturing cost is ₦20,300

The principle of double entry in accounting, which developed from the axioms of the accounting equation, is a fundamental concept that ensures the integrity of financial records. This principle is based on the accounting equation:

Assets = Liabilities + Equity

The fund used to service all operations of government is the 'consolidated revenue fund.' This fund is the primary account from which government expenditures are made and services are funded.

Non-profit organizations are typically established for purposes other than making a profit for their owners or shareholders. They rely on various sources of income to fund their activities and achieve their charitable or social objectives.

Donations: Non-profits often receive financial support from individuals, corporations, and foundations in the form of charitable donations.

Subscription/dues: Non-profit organizations may charge their members regular fees or dues to sustain their operations.

Entrance fees: Some non-profits charge entrance fees for events, programs, or memberships.

The journal has the following headings: date, debit, and credit. The missing heading is 'discount,' which is not typically found in a journal entry.