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. 

Goodwill = Purchase consideration - Value of assets
Total value of assets = 190,000 + 170,000 + 60,000 - (50,000)
= 370,000

Hence, 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

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.