Question Tag: Partnership

Search 500 + past questions and counting.

FA – Nov 2024 – L1 – Q1 – Partnership Financial Statements

Prepare the profit or loss and appropriation account and financial position statement for a partnership at retirement and admission of partners.

Question

Atsu, Baba, and Chawe are in partnership, providing management services, sharing profits in the ratio 5:3:2 after charging annual salaries of GH¢18,000 each. Current accounts are not maintained. On 30 June 2024, Atsu retired.

Dua was admitted on 1 July 2024 to the partnership and is entitled to 30% of the profits of the current partnership, with the balance being shared equally between Baba and Chawe.

The previous partnership trial balance as of 30 June 2024 was as follows:

Description	GH¢	GH¢
Capital accounts – Atsu		12,519
Capital accounts – Baba		65,844
Capital accounts – Chawe		33,618
Trade receivables	138,615
Inventories at 1 July 2023	6,000
Operating expenses	419,166
Investment	300
Bank overdraft		33,510
Trade payables		52,218
Revenue		565,296
Total	663,543	663,543

Additional Information:

Inventory remains at GH¢6,000.
Full provision is required for an irrecoverable debt of GH¢3,450.
Adjustments agreed by partners:
- The investment is to be included at GH¢4,500.
- Goodwill, which remains in the books, is valued at GH¢72,000.
On 1 July 2024, GH¢30,000 due to Atsu was transferred to Dua. The balance due to Atsu is to be repaid over three years, commencing on 1 July 2024.
Dua introduced cash of GH¢22,500 to the partnership.

Required:
i) Prepare the statement of profit or loss and appropriation account of the previous partnership for the year ended 30 June 2024 and a statement of financial position at that date. (9 marks)
ii) Prepare the statement of financial position for the current partnership as of 1 July 2024. (6 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Appropriation, Capital Accounts, Financial Position, Goodwill, Partnership, Profit or Loss
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: Nov 2024

AT – Nov 2017 – L3 – Q7 – Tax Implications of Mergers and Acquisitions

Advise on tax implications for Aba Foods merger/acquisition options with Ifedi Foods.

Question

The prevailing economic condition has led to the business cessation of many SMEs. Aba Foods Limited, a well-known food and beverage company in Abia State, faced difficulties in securing long-term loans, preventing the replacement of its outdated equipment and leading to losses. To ensure continuity, the company considered mergers or acquisitions and entered discussions with Chief Egodi of Ifedi Group. Chief Egodi, concerned about the tax implications of potential arrangements, sought advice from your firm, Aliyara & Co., Chartered Accountants.

Required:
Provide a presentation in the form of advice:

(a) Explain the tax implications of Aba Foods Limited merging with Ifedi Foods and Beverage Limited, with Ifedi inheriting all assets and liabilities. (5 Marks)
(b) Explain the tax implications if Ifedi Foods and Beverage Limited is reconstituted to take over Aba Foods’ assets and liabilities. (5 Marks)
(c) Explain the tax implications if Ifedi Foods and Aba Foods enter a Joint Venture or Partnership Agreement. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Acquisition, Capital gains tax, FIRS, Merger, Partnership, Taxation, VAT, WHT
Level: Level 3

Topic: Tax Implications of Mergers and Acquisitions
Series: NOV 2017

BL – Nov 2020 – L1 – SB – Q6c – Partnership Law

Assess the legality of different partnership arrangements.

Question

Comment on the legality of the following relationships operating as partnerships:

i. A partnership of 16 persons established for charitable purposes
ii. Adex cooperative society consisting of 500 members
iii. Black and Blue law firm consisting of 31 lawyers
iv. Stone Partnership firm comprising Segun aged 28, Tunde aged 17
v. A partnership of volunteers for the purpose of helping persons displaced by flood.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Charitable Purpose, Cooperative Society, Law Firm, Legal Entity, Minor Partnership, Partnership, Volunteers
Level: Level 1

Topic: Partnership Law
Series: NOV 2020

TAX – Nov 2020 – L1 – SA – Q1 – Introduction to Taxation

Objective questions testing basic financial accounting principles.

Question

Which of the following items is NOT found on the debit column of a trial balance?
A. Capital
B. Motor vehicle
C. Rent and rates
D. Salaries and wages
E. Postage and stationary

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Conventions, Control Account, Financial Statements, Income Statement, Inventory, Partnership, Source Document, Trial Balance
Level: Level 1

Topic: Introduction to Taxation
Series: NOV 2020

BL – May 2012 – L1 – SA – Q11 – Partnership Law

Identify what a partner must do to dissolve a partnership.

Question

What must a partner do by himself in order to dissolve the partnership in which he is a partner?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Notice, Partnership
Level: Level 1

Topic: Partnership Law
Series: MAY 2012

BL – May 2012 – L1 – SA – Q17 – Partnership Law

Identify the usual range of membership in a general partnership.

Question

The membership of a general partnership is usually from:

A. Two to twenty persons
B. Two to twenty-five persons
C. One to thirty persons
D. One to twenty-five persons
E. Three to twenty-five persons

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, Membership, Partnership
Level: Level 1

Topic: Partnership Law
Series: MAY 2012

FA – May 2012 – L1 – SA – Q8 -Partnership Accounts

Identifying actions taken during the admission of a partner.

Question

Which of the following is NOT an action for admission of a partner during the year?

A. Preparing the financial statements up to the date of admission
B. Determining goodwill, if any, at that date
C. Preparing a statement of account
D. Preparing a statement of financial position
E. Partners will decide if goodwill should be maintained in books or not.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Statements, Goodwill, Partnership
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2012

BL – Nov 2011 – L1 – SA – Q6 – Partnership Law

Identify which aspect is not required in partnership agreements.

Question

The parties in a partnership arrangement must agree on all of the following EXCEPT:
A. Profit sharing
B. Business management
C. Capital contribution
D. Dissolution
E. Pension reform

Answer

Find Related Questions by Tags, levels, etc.

Tags: Agreement, Business Law, Partnership
Level: Level 1

Topic: Partnership Law
Series: NOV 2011

BL – Nov 2011 – L1 – SA – Q4 – Partnership Law

Identify the minimum number of general partners required in a valid limited partnership.

Question

The minimum number of general partner(s) in a valid limited partnership is:
A. Two
B. Three
C. One
D. Four
E. Five

Answer

Find Related Questions by Tags, levels, etc.

Tags: Business Law, General Partner, Limited Partnership, Partnership
Level: Level 1

Topic: Partnership Law
Series: NOV 2011

FA – Nov 2020 – L1 – SB – Q6b – Partnership Accounts

Prepare the revaluation account, partners' capital accounts, and the statement of financial position.

Question

b. Emeka has been in business as a Japan spare part dealer. The last statement of financial position of his business as at September 30, 2019, is given below:

	N’000	N’000
Equity
Capital	1,000
Retained earnings	130
	1,130
Drawings	(60)
	1,070
Non-current assets:
PPE		1,100
Current assets:
Inventories		190
Trade payables		40
Bank		45
	1,375	1,375

On October 1, 2019, he agreed with Bode to join him, and the new business will trade under the name and style EmBo Ventures.

Terms of the new business:

Bode is to contribute capital of N1,250,000 for an equal share of profits.
The firm will take over the assets and liabilities of Emeka at their book values, except for:
- PPE: N1,250,000
- Inventories: N175,000
The partners will maintain equal capital, and any shortfall in Emeka’s capital should be made good by credit from revaluation or through additional funds.

Required:

Prepare for EmBo Ventures: i. Revaluation account (5 Marks)
ii. Partners’ capital accounts (5 Marks)
iii. Statement of financial position as at October 1, 2019 (5 Marks)

(Total: 15 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Capital Accounts, Partnership, Revaluation, Statement of Financial Position
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2020

FA – Nov 2021 – L1 – SA – Q20 – Partnership Accounting

This question addresses when goodwill can be valued in a partnership.

Question

Goodwill can be valued in partnership when:
A. Partners make a profit
B. Large losses are made
C. A partner retires
D. A new branch is opened
E. A partner receives a salary

Answer

Find Related Questions by Tags, levels, etc.

Tags: Goodwill, Multiple Choice, Partnership, Valuation
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2021

BL – Nov 2022 – L1 – SB – Q5b – Partnership Law

Stating the characteristics of a limited partner.

Question

1. Registered partnership may be categorized into two.
Required:
State six characteristics of a limited partner.

2. Vitiating elements in contracts are recognized under common law.

Required:
Explain three types of mistake under law of contracts.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Contract Law, Legal Characteristics, Limited Partner, Mistake, Partnership, Vitiating Elements
Level: Level 1

Topic: Partnership Law
Series: NOV 2022

BL – Nov 2022 – L1 – SA – Q3 – Partnership Law

Identifying the term for a partner who participates in managing the firm.

Question

A partner who participates in the management of the firm is called a:

A. Matching partner
B. Limited partner
C. Coordinating partner
D. General partner
E. Contributing partner

Answer

Find Related Questions by Tags, levels, etc.

Tags: Management, Partnership
Level: Level 1

Topic: Partnership Law
Series: NOV 2022

FA – May 2022 – L1 – SA – Q11 – Partnership Accounts

Determine the amount to be debited to the office equipment account when a partner contributes equipment.

Question

As part of the initial investment, a partner contributed office equipment that originally cost ₦20,000,000 and on which accumulated depreciation of ₦12,500,000 had been recorded. If the partners agree on a valuation of ₦9,000,000 for the equipment, what amount should be debited to the office equipment account?

A. ₦7,500,000
B. ₦9,000,000
C. ₦9,500,000
D. ₦12,500,000
E. ₦20,000,000

Answer

Find Related Questions by Tags, levels, etc.

Tags: Asset Valuation, Contributions, Partnership
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2022

FA – Nov 2022 – L1 – SB – Q2 – Partnership Accounts

This question requires the preparation of a statement of profit or loss and appropriation account and partners’ current accounts.

Question

Bala and Ade had been together in partnership for several years in plastic manufacturing, sharing profits and losses in the ratio of 3:2 after payment of salaries of N3,000,000 p.a. to each partner.

On September 1, 2020, Ngozi was admitted into partnership on the following terms:

(a) She paid N2,800,000 to the partnership as her capital contribution; and
(b) She would be entitled to a salary of N2,700,000 per annum and a 20% share of profits after charging all salaries.

Bala and Ade are to continue their old profit-sharing ratios, and Ngozi’s 20% share of profits is guaranteed at a minimum of N1,500,000 per annum by the old partners.

On December 31, 2020, the following balances were extracted from the partnership books of Bala, Ade, and Ngozi:

You are informed that:

(i) Allowances for doubtful debts should be maintained at 5% of receivables.
(ii) Inventory at December 31, 2020, was valued at N12,000,000.
(iii) Depreciation on plant and machinery is 20% per annum, and on motor vehicles, it is 25% per annum.

You are required to prepare the following:
a. Statement of profit or loss and appropriation for the year ended December 31, 2020, accounting for Ngozi on a pro-rata time basis. (12 Marks)
b. Partners’ current accounts for the above period. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Appropriation, Current Accounts, Partnership, Profit Sharing
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: NOV 2022

BL – May 2021 – L1 – SB – Q1c – Partnership Law

Dispute between partners over profit-sharing entitlement and registered partnership implications.

Question

Oguche and Agoro have been friends for twenty-five years. They agreed to trade together by contributing money to buy textile materials from Aswani market in Lagos, Aba market in Abia State, and Sabongari market in Kano. The two friends have been buying the materials and sharing them for sale in towns and villages in Oyo State, Nigeria. Recently, Agoro bought textile materials from Kano when he visited his political associates in that city. Agoro resold the materials at a huge profit, and when Oguche became aware of that fact, he approached Agoro, demanding a share in the profit of the resale, basing his entitlement on the argument that they are partners. Agoro has refused to share the profit with Oguche, and the latter has approached you for advice.

Required:
i. Advise Oguche on whether or not he is entitled to a share in the profit that Agoro made. (6 Marks)

ii. Would you have advised Oguche differently if the two friends had a registered partnership under the name and style “Oguche and Agoro Ventures”? (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Dispute Resolution, Partnership, Profit Sharing
Level: Level 1

Topic: Partnership Law
Series: MAY 2021

BL – May 2021 – L1 – SA – Q4 – Partnership Law

Identifying the condition that revokes the power of a partner to bind the firm.

Question

The power of a partner to bind the firm is revoked by

A. Amortisation
B. Merger
C. Restructuring
D. Dissolution
E. Articulation

Answer

Find Related Questions by Tags, levels, etc.

Tags: Dissolution, Firm, Partnership, Partnership Law
Level: Level 1

Topic: Partnership Law
Series: MAY 2021

BL – Nov 2023 – L1 – SB – Q1b – Partnership Law

Advises on the legal position regarding a partnership dispute over the sharing of profits from palm oil fruit sales.

Question

Ulokoagah, Etseosomi, and Ulekhia, farmers in Ilogboda, Edo State, agreed to carry on a business of buying palm oil fruits for milling, selling the product, and sharing whatever profits they made from the business. The three of them contributed ₦5,000 each as working capital. Etseosomi, thereafter, bought palm oil fruits with his own money, which he milled and sold at a profit. Ulokoagah and Ulekhia are demanding a share of Etseosomi’s profits, which the latter has rejected. The farmers have come to you for advice.

Required:
State the legal position and advise the farmers. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Advice, Business Dispute, Legal Position, Partnership, Profit Sharing
Level: Level 1

Topic: Partnership Law
Series: NOV 2023

FA – May 2021 – L1 – SA – Q13 – Partnership Accounts

Understand the distribution of an insolvent partner’s deficiency among solvent partners.

Question

Which of the following is correct about the treatment of a partner with a deficiency at the end of partnership dissolution?
i. The partner may have to pay the whole deficiency
ii. Insolvent partner’s deficiency is borne by the solvent partners in the last agreed capital
iii. Insolvent partner’s deficiency is borne by the solvent partners in the profit or loss sharing ratio

A. I and II
B. II and III
C. I and III
D. I, II, and III
E. II

Answer

Find Related Questions by Tags, levels, etc.

Tags: Insolvent Partner, Partnership, Solvent Partners
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2021

FA – May 2021 – L1 – SA – Q12 – Partnership Accounts

Identify a scenario where partners’ current accounts are not required.

Question

In which of the following situations is partners’ current accounts NOT required?
A. First year of the partnership business
B. Dissolution of partnership
C. Change in partners’ profit sharing ratio
D. Admission of a partner
E. Retirement of a partner

Answer

Find Related Questions by Tags, levels, etc.

Tags: Current Account, Dissolution, Partnership
Level: Level 1

Topic: Partnership Accounts (Including Profit Sharing, Capital and Current Accounts)
Series: MAY 2021

Question Tag: Partnership

Filter by Professional Bodies

Filter by Subject

Filter by Series

Filter by Topics

Filter by Levels

FA – Nov 2024 – L1 – Q1 – Partnership Financial Statements

Prepare the profit or loss and appropriation account and financial position statement for a partnership at retirement and admission of partners.

You're reporting an error for "FA – Nov 2024 – L1 – Q1 – Partnership Financial Statements"

AT – Nov 2017 – L3 – Q7 – Tax Implications of Mergers and Acquisitions

Advise on tax implications for Aba Foods merger/acquisition options with Ifedi Foods.

You're reporting an error for "AT – Nov 2017 – L3 – Q7 – Tax Implications of Mergers and Acquisitions"

BL – Nov 2020 – L1 – SB – Q6c – Partnership Law

Assess the legality of different partnership arrangements.

You're reporting an error for "BL – Nov 2020 – L1 – SB – Q6c – Partnership Law"

TAX – Nov 2020 – L1 – SA – Q1 – Introduction to Taxation

Objective questions testing basic financial accounting principles.

You're reporting an error for "TAX – Nov 2020 – L1 – SA – Q1 – Introduction to Taxation"

BL – May 2012 – L1 – SA – Q11 – Partnership Law

Identify what a partner must do to dissolve a partnership.

You're reporting an error for "BL – May 2012 – L1 – SA – Q11 – Partnership Law"

BL – May 2012 – L1 – SA – Q17 – Partnership Law

Identify the usual range of membership in a general partnership.

You're reporting an error for "BL – May 2012 – L1 – SA – Q17 – Partnership Law"

FA – May 2012 – L1 – SA – Q8 -Partnership Accounts

Identifying actions taken during the admission of a partner.

You're reporting an error for "FA – May 2012 – L1 – SA – Q8 -Partnership Accounts"

BL – Nov 2011 – L1 – SA – Q6 – Partnership Law

Identify which aspect is not required in partnership agreements.

You're reporting an error for "BL – Nov 2011 – L1 – SA – Q6 – Partnership Law"

BL – Nov 2011 – L1 – SA – Q4 – Partnership Law

Identify the minimum number of general partners required in a valid limited partnership.

You're reporting an error for "BL – Nov 2011 – L1 – SA – Q4 – Partnership Law"

FA – Nov 2020 – L1 – SB – Q6b – Partnership Accounts

Prepare the revaluation account, partners' capital accounts, and the statement of financial position.

You're reporting an error for "FA – Nov 2020 – L1 – SB – Q6b – Partnership Accounts"

FA – Nov 2021 – L1 – SA – Q20 – Partnership Accounting

This question addresses when goodwill can be valued in a partnership.

You're reporting an error for "FA – Nov 2021 – L1 – SA – Q20 – Partnership Accounting"

BL – Nov 2022 – L1 – SB – Q5b – Partnership Law

Stating the characteristics of a limited partner.

You're reporting an error for "BL – Nov 2022 – L1 – SB – Q5b – Partnership Law"

BL – Nov 2022 – L1 – SA – Q3 – Partnership Law

Identifying the term for a partner who participates in managing the firm.

You're reporting an error for "BL – Nov 2022 – L1 – SA – Q3 – Partnership Law"

FA – May 2022 – L1 – SA – Q11 – Partnership Accounts

Determine the amount to be debited to the office equipment account when a partner contributes equipment.

You're reporting an error for "FA – May 2022 – L1 – SA – Q11 – Partnership Accounts"

FA – Nov 2022 – L1 – SB – Q2 – Partnership Accounts

This question requires the preparation of a statement of profit or loss and appropriation account and partners’ current accounts.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q2 – Partnership Accounts"

BL – May 2021 – L1 – SB – Q1c – Partnership Law

Dispute between partners over profit-sharing entitlement and registered partnership implications.

You're reporting an error for "BL – May 2021 – L1 – SB – Q1c – Partnership Law"

BL – May 2021 – L1 – SA – Q4 – Partnership Law

Identifying the condition that revokes the power of a partner to bind the firm.

You're reporting an error for "BL – May 2021 – L1 – SA – Q4 – Partnership Law"

BL – Nov 2023 – L1 – SB – Q1b – Partnership Law

Advises on the legal position regarding a partnership dispute over the sharing of profits from palm oil fruit sales.

You're reporting an error for "BL – Nov 2023 – L1 – SB – Q1b – Partnership Law"

FA – May 2021 – L1 – SA – Q13 – Partnership Accounts

Understand the distribution of an insolvent partner’s deficiency among solvent partners.

You're reporting an error for "FA – May 2021 – L1 – SA – Q13 – Partnership Accounts"

FA – May 2021 – L1 – SA – Q12 – Partnership Accounts

Identify a scenario where partners’ current accounts are not required.

You're reporting an error for "FA – May 2021 – L1 – SA – Q12 – Partnership Accounts"

Our offerings

Contact Info

Customer

Get In Touch

admin