Partnership Accounts: JAMB Principles of Accounts Questions, Answers & Notes

What Partnership Accounts covers in the JAMB Principles of Accounts syllabus

A partnership is a business owned by 2 to 20 persons who share profits, governed by a partnership deed (agreement); without a deed, profits and losses are shared equally. The profit and loss appropriation account shows how net profit is shared: appropriations include interest on capital (rewarding invested capital), partners' salaries, and interest on drawings (charged to partners, increasing shareable profit); the residual profit is shared in the agreed profit-sharing ratio. Each partner has a capital account and a current account (under fixed capital, capital stays fixed and profit shares/drawings go to the current account). A general (active) partner has unlimited liability; a limited partner's is limited to their capital; a sleeping partner invests without managing. Goodwill (the firm's reputation) is accounted for when a partner is admitted, and on dissolution a realisation account closes the books and shares the gain/loss.

For Partnership Accounts, JAMB expects you to be able to:

• Define a partnership, the deed and the default sharing rule
• Explain the appropriation account, interest on capital/drawings, salaries
• Explain capital/current accounts, goodwill, admission and dissolution

Key facts & revision notes: Partnership Accounts

These are the recurring points our Partnership Accounts questions test — revise them until each feels automatic, then practise the questions above to lock them in.

• A partnership is a business owned by 2 to 20 persons who agree to share profits.
• The partnership deed (agreement) sets out the terms governing the partnership.
• In the absence of a deed, profits and losses are shared equally (per the Partnership Act).
• Interest on capital is an appropriation of profit, shared out before the residual profit.
• Interest on drawings is charged to partners and increases the profit available for sharing.
• A partner's salary is an appropriation of profit, shown in the appropriation account.
• The profit and loss appropriation account shows how net profit is shared among the partners.
• Each partner has a current account (and a capital account) showing profit share, drawings, interest, etc.
• With fixed capital, the capital account stays fixed and all other items go to the current account.
• Goodwill (the firm's reputation/earning power) is often accounted for when a new partner is admitted.
• Equal sharing: #60,000 ÷ 3 = #20,000 each.
• A limited partner's liability is limited to the amount of capital they contributed.
• A general (active) partner has unlimited liability for the partnership's debts.
• Dissolution is the ending/winding up of a partnership.
• On dissolution, a realisation account is opened to sell assets, pay liabilities and share the resulting gain/loss.
• A sleeping (dormant) partner contributes capital but does not take part in management.
• Interest on capital rewards each partner for the capital they contributed to the firm.
• Residual profit is shared in the agreed profit-sharing ratio (equal if no deed).
• A partnership can raise more capital and shares responsibility, work and risk among partners.
• Partnership accounts show the profit and how it is appropriated/shared among the partners.

Worked examples

Three Partnership Accounts questions with the answer and a short explanation, so you can see how the topic is set before you practise the full set.

How Partnership Accounts is tested in JAMB Principles of Accounts

Our Partnership Accounts bank holds 20 questions (4 medium, 16 hard). JAMB Principles of Accounts typically returns to Partnership Accounts year after year, so steady practice on this topic is high-value revision. Questions are multiple-choice with four options, and at UTME pace you get roughly 40 seconds each — which is why timed practice matters.

How to answer Partnership Accounts questions

Work the stem first and predict the answer before you look at the options; then eliminate the ones that contradict the key facts above. Watch for “which is not…”, “all of the above” and “except” style stems, which are where rushed candidates lose easy marks on Partnership Accounts. If a calculation or a precise definition is involved, work it from first principles rather than guessing from a half-remembered rule. When two options look right, re-read the stem for the qualifier that separates them — JAMB rarely repeats an option by accident. If you are still unsure, eliminate the two weakest choices to lift your odds, flag the question, and move on; never burn a full minute on one Principles of Accounts item when the exam gives you about forty seconds each. Then come back to flagged questions with whatever time remains. The single most reliable way to get faster at Partnership Accounts is repeated timed practice, so use the button above until the recurring patterns feel automatic.

Common mistakes to avoid in Partnership Accounts

The errors that cost marks on Partnership Accounts are usually careless rather than conceptual: misreading a negative stem, confusing two similar terms, or rushing a definition you actually know. Candidates also over-rely on “expo” and last-minute cramming instead of understanding the topic — which fails the moment JAMB rephrases a familiar idea. Treat every option as a claim to be checked against the facts above, keep your working tidy for any calculation, and don’t change a considered answer on a hunch. Above all, revise Partnership Accounts actively by answering questions, not just by re-reading notes — recall under time is what the exam rewards.

Frequently asked questions

Is Partnership Accounts part of the JAMB Principles of Accounts syllabus?

Yes. Partnership Accounts is a recognised topic in the JAMB Principles of Accounts syllabus, covering define a partnership, the deed and the default sharing rule. You should be able to recall its key facts and apply them to multiple-choice questions.

How many Partnership Accounts questions can I practise on Belmadeng?

There are 20 original, JAMB-standard Partnership Accounts questions in our free bank, each with the correct answer and a worked explanation. You can practise them untimed or as a timed test.

What are the most important points to know about Partnership Accounts?

A partnership is a business owned by 2 to 20 persons who share profits, governed by a partnership deed (agreement); without a deed, profits and losses are shared equally. The profit and loss appropriation account shows how net profit is shared: appropriations include interest on capital (rewarding i…

How do I answer Partnership Accounts questions quickly in JAMB?

Read the stem carefully, eliminate clearly wrong options, and match the remaining choices to the key facts for Partnership Accounts. Practising timed Partnership Accounts questions builds the speed you need for UTME's pace of about 40 seconds per question.

Are these JAMB Principles of Accounts Partnership Accounts questions past questions or original?

They are original questions written to JAMB (UTME) standard and mapped to the official syllabus — not reproduced past papers. This keeps them legal to use freely while closely mirroring how the real exam tests the topic.

Where can I practise Partnership Accounts questions free without signing up?

Right here — tap “Start Partnership Accounts practice” on this page to begin instantly. Belmadeng's CBT practice is completely free and needs no sign-up, download or subscription.

About these questions: original, JAMB-standard items written from the official UTME Principles of Accounts syllabus (last reviewed 2026-09-18). Belmadeng is an independent study platform and is not affiliated with JAMB. Spotted an error? Use the report link.