2023 - JAMB Accounting Past Questions and Answers - page 3

Dissolution expenses are the costs incurred in the process of dissolving a partnership. These expenses are typically paid in cash, and therefore, the accounting entry for dissolution expenses involves debiting the Realization account (to record the expenses) and crediting the Cash account (to reflect the cash outflow).

Cost of goods sold:
2600 + 4000 + 500 = 7100

Gross profit:
9000 - 7100 = 1900

Net profit:
Gross profit - Expenses
= 1900 - 500
= ₦1400

The discount column on the left-hand side of a cash book typically represents the discounts allowed to creditors. This column records the discounts given to suppliers or creditors when payments are made promptly, which reduces the amount payable to them.

Balance c/d = Net Profit + Profit & Loss - ( Goodwill + Ordinary Share + Preference Share)
= (90,000 + 10,000) - ( 1000 + 25000 + 7500)
= 100,000 - 33500
= ₦66500