Questions from Financial Accounting

Q: Describe the different forms of incomplete records with which you are familiar

Describe the different forms of incomplete records with which you are familiar.

Q: If there is no partnership agreement the provisions of the Partnership Act

If there is no partnership agreement the provisions of the Partnership Act 1890 apply. List the main provisions of this Act with regard to the rights of partners between themselves, including the shar...

Q: Enter the following transactions in the books of ‘Mary Ward’ for

Enter the following transactions in the books of ‘Mary Ward’ for December (use T accounts). 1 Dec introduced a motor vehicle to the new business worth £8,000 1 Dec transferred a computer from home to...

Q: Explain each of the following in the context of partnership profit sharing

Explain each of the following in the context of partnership profit sharing: a. partners’ salaries; b. interest on capital; c. interest on drawings; d. residual profit.

Q: Lane and Hill have decided to form a partnership. Lane is

Lane and Hill have decided to form a partnership. Lane is to contribute £150,000 as capital and Hill £20,000. Hill is to work full time in the business and Lane one day a week. Because Hill has no oth...

Q: Explain the difference between each of the following ledger accounts in the

Explain the difference between each of the following ledger accounts in the books of a partnership: a. capital account; b. current account; c. drawings account.

Q: a. What is the difference between positive and negative goodwill?

a. What is the difference between positive and negative goodwill? b. What is the difference between purchased goodwill and internally generated goodwill?

Q: a. Explain the circumstances in which goodwill might appear in the

a. Explain the circumstances in which goodwill might appear in the books of a partnership. b. Describe how it would be treated in the statement of financial position.

Q: Jack Straw, a director in ABC Ltd, has suggested that

Jack Straw, a director in ABC Ltd, has suggested that the accounting treatment for two items be changed in the next set of financial statements. These are summarized as follows: 1. The first is goodwi...

Q: Describe three different methods of valuing goodwill where the purchase price is

Describe three different methods of valuing goodwill where the purchase price is unknown.