ACCT 102 EXAM QUESTIONS WITH
ALL CORRECT ANSWERS 2025 NEW
UPDATE
When recording the contribution of assets and liabilities by a partner, what value are
investments recorded at? - Answer-Their current fair value
What is the transaction to record the contribution of assets and liabilities by a partner? -
Answer-Assets (List) Dr
Liabilities (List) Cr
Partner's Name, Capital Cr
How much cash can a partner withdraw from the partnership? - Answer-The amount
that is defined in the partnership agreement
What type of account is drawings? - Answer-Contra equity (Dr)
At the end of every year, what accounts are the drawings accounts closed off to? -
Answer-The current accounts of the partners
What is the transaction to record for drawings by a partner? - Answer-Partner's Name,
Drawings Dr
Cash/Other asset Cr
For the admission of a new partner, what are the steps? - Answer-Dissolve the current
partnership by closing off accumulated depreciation accounts, revaluing assets to their
market value, and apportioning the revaluation account to the existing partners. Then
creating the new partnership by journalising the contribution by the new partner plus the
capital of the existing partners
What is the transaction to close off accumulated depreciation when dissolving a current
partnership? (step 1) - Answer-Accumulated depreciation - Asset Dr
Asset Cr
What is the transaction to revalue an asset when the market value > book value? (step
2 of dissolving a current partnership) - Answer-Asset Dr
Revaluation Reserve Cr
,What is the transaction to revalue an asset when the book value > market value? (step
2 of dissolving a current partnership) - Answer-Revaluation reserve Dr
Asset Dr
What is the transaction to revalue a liability when the market value > book value? (step
2 of dissolving a current partnership) - Answer-Revaluation reserve Dr
Liability Cr
What is the transaction to revalue a liability when the book value > market value? (step
2 of dissolving a current partnership) - Answer-Liability Dr
Revaluation reserve Cr
What is the transaction to apportion the revaluation account to the existing partners
when the revaluation account has a debit balance? (step 3 of dissolving a current
partnership) - Answer-Partner 1, capital Dr
Partner 2, capital Dr
Revaluation reserve Cr
What is the transaction to apportion the revaluation account to the existing partners
when the revaluation account has a credit balance? (step 3 of dissolving a current
partnership) - Answer-Revaluation reserve Dr
Partner 1, capital Cr
Partner 2, capital Cr
What is the transaction to record the admission of the new partner when their capital
received is > assets contributed? - bonus to new partner - (step 2 after old partnership
has been dissolved) - Answer-Assets Contributed Dr
Existing Partner 1, Capital Dr
Existing Partner 2, Capital Dr
New Partner, Capital Cr
What is the transaction to record the admission of the new partner when their capital
received is < assets contributed? - bonus to exisiting partners - (step 2 after old
partnership has been dissolved) - Answer-Assets Contributed Dr
Existing Partner 1, Capital Cr
Existing Partner 2, Capital Cr
New Partner, Capital Cr
What is the transaction to record the creation of the new partnership? (step 1 after old
partnership has been dissolved) - Answer-Cash Dr
New Partner's Name, Capital Cr
Steps in the dissolution (liquidation) of a partnership - Answer-Create partnership
realisation account, record cash (cash received from sale of assets - cash used to settle
liabilities) in the partnership realisation account, apportion the balance of partnership
realisation account to the partner's current accounts, close off partner's drawings
, accounts to each partner's current account, close off partner's current accounts to each
partner's capital account, close off cash account to partner's capital account
What is the transaction for the creation of the partnership realisation account? (step 1 of
liquidation of a partnership) - Answer-Partnership realisation account Dr or Cr
Liabilities Dr
Assets Cr
What is the transaction to record the cash received from sale of assets and cash used
to settle liabilities, in the partnership realisation account? (step 2 of liquidation of a
partnership) - Answer-Cash at bank Dr
Partnership realisation account Cr
What is the transaction to close off the balance in the partnership realisation account by
apportioning it to each of the partner's current accounts? (step 3 of liquidation of a
partnership) - Answer-Current - Partner 1 Dr
Current - Partner 2 Dr
Partnership Realisation account Cr
Equation for collections from customers (OA): - Answer-Sales revenue - bad debts +
opening accounts receivable - closing accounts receivable
Equation for payment to suppliers (OA): - Answer-Purchases + opening accounts
payable - closing accounts payable
Equation for payment of income taxes (OA): - Answer-Income tax expense + opening
tax payable - closing tax payable
Equation for operating expenses (OA): - Answer-Operating expenses + closing prepaid
expenses - opening prepaid expenses + opening accrued liabilities - closing accrued
liabilities
Equation for purchases: - Answer-COGS + closing inventory - opening inventory
Equation for sale of non-current assets (IA): - Answer-Acquisition cost - depreciation +
gain on sale - loss on sale + opening net assets - closing net assets
Equation for repayments of loans (IA inflow): - Answer-New loans made + opening
loans - closing loans
Equation for acquisition of non-current assets (IA outflow): - Answer-Depreciation +
carrying amount of assets sold + closing net assets - opening net assets
Equation for loans to other parties (IA outflow): - Answer-Collections - new loans made
+ closing loans - opening loans
ALL CORRECT ANSWERS 2025 NEW
UPDATE
When recording the contribution of assets and liabilities by a partner, what value are
investments recorded at? - Answer-Their current fair value
What is the transaction to record the contribution of assets and liabilities by a partner? -
Answer-Assets (List) Dr
Liabilities (List) Cr
Partner's Name, Capital Cr
How much cash can a partner withdraw from the partnership? - Answer-The amount
that is defined in the partnership agreement
What type of account is drawings? - Answer-Contra equity (Dr)
At the end of every year, what accounts are the drawings accounts closed off to? -
Answer-The current accounts of the partners
What is the transaction to record for drawings by a partner? - Answer-Partner's Name,
Drawings Dr
Cash/Other asset Cr
For the admission of a new partner, what are the steps? - Answer-Dissolve the current
partnership by closing off accumulated depreciation accounts, revaluing assets to their
market value, and apportioning the revaluation account to the existing partners. Then
creating the new partnership by journalising the contribution by the new partner plus the
capital of the existing partners
What is the transaction to close off accumulated depreciation when dissolving a current
partnership? (step 1) - Answer-Accumulated depreciation - Asset Dr
Asset Cr
What is the transaction to revalue an asset when the market value > book value? (step
2 of dissolving a current partnership) - Answer-Asset Dr
Revaluation Reserve Cr
,What is the transaction to revalue an asset when the book value > market value? (step
2 of dissolving a current partnership) - Answer-Revaluation reserve Dr
Asset Dr
What is the transaction to revalue a liability when the market value > book value? (step
2 of dissolving a current partnership) - Answer-Revaluation reserve Dr
Liability Cr
What is the transaction to revalue a liability when the book value > market value? (step
2 of dissolving a current partnership) - Answer-Liability Dr
Revaluation reserve Cr
What is the transaction to apportion the revaluation account to the existing partners
when the revaluation account has a debit balance? (step 3 of dissolving a current
partnership) - Answer-Partner 1, capital Dr
Partner 2, capital Dr
Revaluation reserve Cr
What is the transaction to apportion the revaluation account to the existing partners
when the revaluation account has a credit balance? (step 3 of dissolving a current
partnership) - Answer-Revaluation reserve Dr
Partner 1, capital Cr
Partner 2, capital Cr
What is the transaction to record the admission of the new partner when their capital
received is > assets contributed? - bonus to new partner - (step 2 after old partnership
has been dissolved) - Answer-Assets Contributed Dr
Existing Partner 1, Capital Dr
Existing Partner 2, Capital Dr
New Partner, Capital Cr
What is the transaction to record the admission of the new partner when their capital
received is < assets contributed? - bonus to exisiting partners - (step 2 after old
partnership has been dissolved) - Answer-Assets Contributed Dr
Existing Partner 1, Capital Cr
Existing Partner 2, Capital Cr
New Partner, Capital Cr
What is the transaction to record the creation of the new partnership? (step 1 after old
partnership has been dissolved) - Answer-Cash Dr
New Partner's Name, Capital Cr
Steps in the dissolution (liquidation) of a partnership - Answer-Create partnership
realisation account, record cash (cash received from sale of assets - cash used to settle
liabilities) in the partnership realisation account, apportion the balance of partnership
realisation account to the partner's current accounts, close off partner's drawings
, accounts to each partner's current account, close off partner's current accounts to each
partner's capital account, close off cash account to partner's capital account
What is the transaction for the creation of the partnership realisation account? (step 1 of
liquidation of a partnership) - Answer-Partnership realisation account Dr or Cr
Liabilities Dr
Assets Cr
What is the transaction to record the cash received from sale of assets and cash used
to settle liabilities, in the partnership realisation account? (step 2 of liquidation of a
partnership) - Answer-Cash at bank Dr
Partnership realisation account Cr
What is the transaction to close off the balance in the partnership realisation account by
apportioning it to each of the partner's current accounts? (step 3 of liquidation of a
partnership) - Answer-Current - Partner 1 Dr
Current - Partner 2 Dr
Partnership Realisation account Cr
Equation for collections from customers (OA): - Answer-Sales revenue - bad debts +
opening accounts receivable - closing accounts receivable
Equation for payment to suppliers (OA): - Answer-Purchases + opening accounts
payable - closing accounts payable
Equation for payment of income taxes (OA): - Answer-Income tax expense + opening
tax payable - closing tax payable
Equation for operating expenses (OA): - Answer-Operating expenses + closing prepaid
expenses - opening prepaid expenses + opening accrued liabilities - closing accrued
liabilities
Equation for purchases: - Answer-COGS + closing inventory - opening inventory
Equation for sale of non-current assets (IA): - Answer-Acquisition cost - depreciation +
gain on sale - loss on sale + opening net assets - closing net assets
Equation for repayments of loans (IA inflow): - Answer-New loans made + opening
loans - closing loans
Equation for acquisition of non-current assets (IA outflow): - Answer-Depreciation +
carrying amount of assets sold + closing net assets - opening net assets
Equation for loans to other parties (IA outflow): - Answer-Collections - new loans made
+ closing loans - opening loans
