Dissolution of Partnership Q&A

2. Why and how are partnerships dissolved? See answer 4. What is a realization account? See answer 6. Explain the phrase “When one partner is insolvent.” See answer 8. State the decision of Justice Joyce in the case of Garner vs. Murray. See answer 10. What will be passed for creditors’ liabilities at the time of dissolution when all partners are insolvent? See answer

Read more

Retirement or Death of a Partner Q&A

2. What types of matters need to be decided when a partner retires? See answer 4. What journal entry for the transfer of general reserves should be passed at the time of a partner’s retirement? See answer 6. How is the gaining ratio calculated? See answer 8. On the retirement of a partner, how is the value of goodwill determined? See answer 10. When is the goodwill method used to determine value o…

Read more

Formation and Organization Q&A

2. Write down four characteristics of a company. See answer 4. What types of companies are there? See answer 6. What are the articles of association? See answer 8. Define the term “promotion.” See answer 10. What are calls in arrears? See answer

Read more

Issuance of Shares and Debentures Q&A

2. Describe the types of shares that exist. See answer 4. What is a dividend? See answer 6. What is a debenture? See answer 8. What does undersubscription mean? See answer 10. What is a debenture stock? See answer 12. Name four features of debentures. See answer 14. Explain the following terms: 1. Share issued at par 2. Share issued at premium 3. Share issued at discount See answer

Read more

Distribution of Profit and Loss Q&A

2. Name four of the essential elements of a partnership. See answer 4. How many types of partners are there in a partnership business? See answer 6. What is a partnership deed/agreement? See answer 8. What is the capital ratio? See answer

Read more

Non-Trading Concerns Q&A

2. State any four characteristics of a non-trading concern. See answer 4. What is an income and expenditure account? See answer 6. What is a capital fund? See answer 8. In accounting, what is a legacy? See answer 10. What is a special subscription? See answer

Read more

Material Costing Methods Q&A

2. What is a bill of materials? See answer 4. Write down the most important methods of pricing material issues. See answer 6. Explain the first in, first out (FIFO) method of material costing. See answer 8. Define the last in, first out (LIFO) method of material costing. See answer 10. What is the average cost method? See answer

Read more

Special Journal Q&A

Test your understanding of the special journal by answering the 9 short questions given below. We recommend that you attempt to answer each question yourself before revealing the answers. If you find any of these questions challenging, check out our article covering the special journal to learn everything you need to know. 2. What is a sales book? See answer 4. What is a sales returns or returns i…

Read more

Adjusting Entries Q&A

Test your understanding of adjusting entries by answering these 10 short questions. We suggest that you try to answer each question yourself before clicking on the ‘See answer’ button. If you find it challenging to answer any of these questions, read our article on adjusting entries from the explanation section of this website. 2. What is the purpose of adjustments? See answer 4. How are prepaid e…

Read more

Trial Balance Q&A

Test your knowledge of trial balances by answering the 8 short questions given below. We suggest that you try to answer each question yourself before clicking on the “See answer” button. If you find it difficult to answer any of these questions, consider reading the trial balance article available in this website’s explanation section. 1. What is a trial balance and why is it prepared? See answer…

Read more