2016 - WAEC Accounting Past Questions and Answers - page 4
In the absence of a partnership agreement, additional capital contributions by partners attract interest of
In the Absent of an agreement, the partners will share profits and losses equally. If an agreement exists, partners divide profits based on the terms specified. Any reason can be used as the basis for establishing a profit-sharing ratio, but the two main factors are responsibility and capital contributions. Additional capital contributed attracts a 5% interest in the absence of a partnership agreement
In preparing partnership accounts, interest on drawings is debited to current accounts and credited to
Interest on drawings is an income to the firm, and hence it is credited to the profit and loss appropriation account. On the other hand, interest on drawings is an expense to the partners, and hence it is debited to their capital accounts and credited to appropriation.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The subscribed share capital is
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The unsubscribed share capital is
Use the following information and answer the question below.
Oruma Ltd issued 300,000 ordinary shares at N100 each. Applications were received for 200,000 shares and all those who applied, paid in full.
The authorized share capital is
The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders.
The entries for credit sales at branch where the head office keeps all records are:Debit
The accounting entry for credit sales at the branch would be to debit branch debtors accounts and credit stock account. To understand this better, remember we debit all receipts whether cash or stock (money or goods that come into the business) and credit all payments (money or goods that goes out of the business). People who buy our goods on credits are our debtors and recorded as current assets in the balance sheet, because in future, we expect to collect are payments for the goods.
The branch current account records
Branch current account; This account is maintained in the head office books to record all transactions between head office and branch. This account is debited with the following
- Goods sent to branch
- Expenses of the branch paid by the head office
- Profit of the branch
This account is credited with the following
- Cash received from the branch
- Goods returned by the branch
The cost of goods returned by branch to head office is debited
The head office will debit the particular branch asset (Branch Machinery, Branch Furniture, or Branch Building, branch stock account etc.) and credit Cash.
Which of the following is a source of local government revenue?
Local government revenue comes from property, sales, and other taxes; levies, dues, charges and fees; and transfers from federal and state governments.