Question Tag: Partnership

Search 500 + past questions and counting.

  • Filter by Professional Bodies

  • Filter by Subject

  • Filter by Series

  • Filter by Topics

  • Filter by Levels

  • 20 Marks

POBL – JUL 2020 – L1 – Q1 – Business Entities in Ghana

Discuss the veracity of the assertion that the only recognized type of business entity in Ghana is a limited liability company.

Ama Too Known, a second-year law student has the tendency of displaying her knowledge and

her ignorance in the law to her non law undergraduate students. She has just advised Abena who

was to go into business that the only recognized type of business entity in Ghana is a limited

liability company.

Required: Discuss the veracity or otherwise of this assertion by Ama too known.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "POBL – JUL 2020 – L1 – Q1 – Business Entities in Ghana"

  • 22 Marks

STP – Feb 2020 – L2 – Q4 – Business Entity Tax Implications

Advise on tax implications of establishing a company, partnership, or sole proprietorship and identify which offers the least tax exposure for an investor.

As a renowned tax consultant, a potential investor in the real estate sector in Ghana is seeking your expert opinion on the tax implications of establishing a company, a partnership or a sole proprietorship and which form of the business organisations gives the least tax exposure for an investor.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "STP – Feb 2020 – L2 – Q4 – Business Entity Tax Implications"

  • 20 Marks

STP – Aug 2018 – L2 – Q4 – Tax Strategies for New Business Formation

Discuss tax implications of establishing a subsidiary, partnership, or branch for Urok Group in Ghana.

(a). The majority shareholder and President of Urok Group of Companies intends to expand his business activities into West Africa. His initial enquiries show that Ghana is a suitable country for his investment. The investor has been informed that there are different tax treatments for the various forms of business organisations in Ghana. As a renowned tax consultant, the investor seeks your expert opinion on the tax implications of establishing following forms of business organisations:

I. A wholly subsidiary company (5 marks)

II. A Partnership (5 marks)

III. A Branch (5 marks)

(b). Which of the above forms of business organisations gives the least tax exposure on the investment Urok Group of Companies intends to make in Ghana.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "STP – Aug 2018 – L2 – Q4 – Tax Strategies for New Business Formation"

  • 20 Marks

POT – Mar 2025 – L2 – Q4- Partnership Taxation

Compute Nmani Pharmacy’s chargeable income for 2023.

a) Three pharmacy students, Abanga, Banzey and Chambas who completed the Tamale Technical University have teamed up to undertake a business venture in the pharmaceutical sector under a Trading Name Nmani Pharmacy. They agreed to share profit and losses in the ratio 3:2:1 for Abanga, Banzey and Chambas respectively. The details provided below relate to the business financial performance for the year 2023.

 

Details GH¢
Sales 663,400
Cost of goods sold:
Opening inventory 150,000
Purchases 300,000
450,000
Closing inventory (120,000)
330,000
Gross profit 333,400
Less expenses:
Staff cost 102,000
Business promotions 58,100
Depreciation 98,200
Electricity and water 53,000
Expired drugs 12,100
Donation 78,000
Rent and rates 15,000
Sundry expenses 50,000
Vehicle running cost 63,000
(529,400)
Net profit 134,000
Tax paid (15,200)
Net profit after tax 118,800

Additional Information:

  1. Staff cost includes monthly stipend allocations to the aged parents of the partners totaling GH¢18,000.
  2. All three Partners are taking care of their aged parents who are more than 60 years.
  3. Business promotions include lunch expenses of the partners amounting to GH¢21,200.
  4. Donations include funeral donation made during the funeral of the mother of the Vice Chancellor of the Tamale Technical University amounting to GH¢20,000.
  5. Sundry expenses include fine amounting to GH¢32,000 imposed by the Food and Drugs Authority for failure to remove some expired drugs from shelves.
  6. The Partners received Withholding Tax Certificates indicating an amount of GH¢15,200 from the Binabaani European Hospital for medical consumables supplied to the hospital.
  7. Capital allowance has been agreed with the Ghana Revenue Authority at GH¢104,200.

Required: i) Compute the chargeable income for Nmani Pharmacy for the 2023 Year of Assessment.

(ii) Compute the net tax payable by each partner for the year 2023.

(b) In line with the provisions of the Income Tax Act, 2015 (Act 896), partnership and limited liability companies in Ghana are taxed in accordance with their residency status in a year of assessment.

Required: State the criteria for the determination of the residency status of partnership and limited liability companies.

(c) All over the world, countries have introduced policies to guarantee income for their hard-working workforce who may go on retirement to enable them to live meaningful lives after retirement. Ghana’s pension system aims to provide personal financial security for employees in their retirement years.

Required: Describe the current pension system in Ghana.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "POT – Mar 2025 – L2 – Q4- Partnership Taxation"

  • 15 Marks

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.

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:

  1. Inventory remains at GH¢6,000.
  2. Full provision is required for an irrecoverable debt of GH¢3,450.
  3. 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.
  4. 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.
  5. 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)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

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

  • 15 Marks

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

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

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)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

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

  • 5 Marks

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

Assess the legality of different partnership arrangements.

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.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

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

  • 1 Marks

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

Identify what a partner must do to dissolve a partnership.

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

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

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

  • 1 Marks

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

Identify the usual range of membership in a general partnership.

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

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

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

  • 1 Marks

FA – May 2023 – L1 – SA – Q12 – Partnership Accounts

Identifying the required adjustment to remove goodwill from the books when a new partner is admitted.

Which of the following adjustments is required to remove goodwill from the books of partnership business, when a new partner is admitted?

A. Debit capital accounts of all partners in new profit-sharing ratio, credit goodwill account

B. Debit capital accounts of old partners in old profit-sharing ratio, credit goodwill account

C. Debit capital accounts of old partners in old profit-sharing ratio, credit capital accounts of all partners in new profit-sharing ratio

D. Debit capital accounts of all partners in new profit-sharing ratio, credit old partners’ capital accounts in old profit-sharing ratio

E. Credit capital accounts of all partners in new profit-sharing ratio, credit cash

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – May 2023 – L1 – SA – Q12 – Partnership Accounts"

  • 1 Marks

FA – May 2023 – L1 – SA – Q11 – Partnership Accounts

Calculating the share of profit for a partner with a guaranteed minimum share.

Saka, Bako and Sule are in partnership sharing profits or losses in the ratio 3:2:1. During the year, the partnership divisible profit was N17,730,000. Saka, but not Bako, guaranteed Sule a minimum share of profit of N3,800,000. Calculate the share of profit of Saka.

A. N5,850,900

B. N6,965,000

C. N8,000,000

D. N8,020,000

E. N8,865,000

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – May 2023 – L1 – SA – Q11 – Partnership Accounts"

  • 20 Marks

FA Nov 2019 – L2 – SB – Q5 – Partnership Accounts

This question involves the preparation of a profit and loss account and a statement of financial position for a partnership firm based on the given partnership agreement and trial balance.

Three brothers; Wa, Zo, and Bia are in partnership, trading under the name and style WaZoBia. The partnership agreement provides for:

% N’000
i. Annual commission payable to:
– Wa 4,000
– Bia 8,000
ii. Annual salary payable to:
– Wa 5,000
– Zo 8,000
iii. Interest on partners’ fixed capital 5%
iv. Interest on partners’ drawings 5%
v. Equal share of profit or loss (1:1:1)

The extract of the partnership balances for the period under review is as follows:

WaZoBia Trial Balance for the year ended October 31, 2019 Debit (N’000) Credit (N’000)
Partners’ capital as at November 1, 2018:
– Wa 60,000
– Zo 60,000
– Bia 50,000
Partners’ drawings:
– Wa 5,000
– Zo 4,000
– Bia 2,000
Gross profit for the year 116,000
Trade receivables 55,000
Trade payables 27,560
Irrecoverable debt 1,000
Utility 8,600
Postage and communication 3,200
Allowances for bad debt at November 1, 2018 6,000
Property, plant and machinery 270,400
Staff cost 18,360
Distribution cost 5,000
Other income 4,000
Finance cost 1,000
5% Loan notes 50,000
Inventory at October 31, 2019 6,000
Accumulated depreciation on freehold properties 16,720
Accumulated amortisation of leasehold property 2,000
Rent and rates 3,360
Cash and cash equivalent 9,360
Total 392,280 392,280

The following information is also relevant for the preparation of the financial statements:

  1. Allowances for doubtful debts should be adjusted to 10% of trade receivables.
  2. Accrued expenses for the period:
    • Utility N400,000;
    • Postage and communication N200,000.
  3. Prepaid expenses for the period:
    • Rent and rates N600,000;
    • Staff cost N300,000.
  4. PPE includes a leasehold property of N20,000,000, which is amortised over 10 years. Depreciation charge for the year on freehold PPE has been estimated to be N5,000,000.
  5. Finance cost in the trial balance includes interest paid on 5% loan notes amounting to N500,000.

Required:

a. Prepare the statement of profit or loss for the year ended October 31, 2019. (12 Marks)

b. Prepare the statement of financial position as at October 31, 2019. (8 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA Nov 2019 – L2 – SB – Q5 – Partnership Accounts"

  • 6 Marks

BL – MarJul 2020 – L1 – SB – Q1b – Partnership Law

Explanation of relationships similar to partnership under partnership law.

Under partnership law, there are rules for determining the existence of a partnership.

Required: Explain briefly THREE relationships that are similar to partnership but are not considered partnerships under the law.

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BL – MarJul 2020 – L1 – SB – Q1b – Partnership Law"

  • 6 Marks

FA – May 2017 – L1 – SB – Q4a – Partnership Accounts

Define goodwill, its recognition, and circumstances leading to its creation in partnership accounts.

A number of factors will lead to the creation of goodwill in a partnership.

Required:

i. Define goodwill and explain its recognition in partnership accounts. (3 Marks)

ii. State THREE examples of circumstances in which goodwill may be created in a partnership. (3 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – May 2017 – L1 – SB – Q4a – Partnership Accounts"

  • 1 Marks

BL – MarJul 2020 – L1 – SA – Q3 – Partnership Law

Question assessing understanding of partnership liability and the implications for legal action against partners.

When the liability of partners in a partnership is described as several, it means an aggrieved party could sue the partners
A. Jointly
B. Collectively
C. With families
D. With firm only
E. Individually

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BL – MarJul 2020 – L1 – SA – Q3 – Partnership Law"

  • 1 Marks

FA – May 2017 – L1 – SA – Q17 – Partnership Accounts

Identifies the process when two partnerships combine into a new one.

Where TWO or more partnerships combine to form a new partnership, the act is called
A. Amalgamation
B. Appropriation
C. Dissolution
D. Realisation
E. Revaluation

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – May 2017 – L1 – SA – Q17 – Partnership Accounts"

  • 6 Marks

BL – May 2024 – L1 – SB – Q2b – Partnership Law

Explain three rules that determine the existence of a partnership under Nigerian law.

A partnership is one of the business organisations that the Companies and Allied Matters Act provides for.
Required:
Explain THREE rules that could be applied to determine the existence of a partnership. (6 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BL – May 2024 – L1 – SB – Q2b – Partnership Law"

  • 1 Marks

FA – May 2016 – L1 – SA – Q19 – Partnership Accounts

Identifying the journal entries required to remove goodwill upon the admission of a new partner.

State the journal entries required to remove the goodwill recognized on the admission of a new partner in a partnership.
A. Dr Partners’ Accounts Cr Profit or Loss
B. Dr Partners’ Account, Dr Goodwill Account Cr Asset Revaluation Account
C. Dr Partners’ Account Cr Asset Revaluation Account
D. Dr Profit or Loss Account Cr Partners’ Account
E. Dr Partners’ Accounts Cr Goodwill Account

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – May 2016 – L1 – SA – Q19 – Partnership Accounts"

  • 10 Marks

BL – May 2015 – L1 – SB – Q3a – Partnership Law

Explain the positions of law in relation to partner contributions and the introduction of a new partner.

‘X’, ‘Y’, and ‘Z’ formed a partnership in 2007 and contributed N400,000, N300,000, and N200,000, respectively. In the course of managing the firm, Y paid the electricity bills of the firm to keep the business of the partnership going, and wants to be reimbursed. X intends to introduce a friend to join the partnership.

Required:
What are the positions of the law in the situations above? (10 Marks)

Login or create a free account to see answers

Login
Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "BL – May 2015 – L1 – SB – Q3a – Partnership Law"

knowsia

Elevate your professional expertise across key business domains with our comprehensive training programs

Our offerings

Community

Contact Info

  • +233203701923
    +233543919232
  • info@knowsia.com

Customer

Get In Touch

Follow us on our social media and get daily updates.

Facebook-f Twitter Linkedin-in Envelope
Oops!

This feature is only available in selected plans.

Click here to view all plans

Click on the login button below to login if you’re already subscribed to a plan or click on the upgrade button below to upgrade your current plan.

Login
Upgrade Plan

If you’re not subscribed to a plan, click on the button below to choose a plan

Subscribe to a plan

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form