Waec Model Questions Vol1 2018 Financial Accounting Question 8

Three partners A, B and C share profits in the ratio 3:2:1. Their opening capital balances are A ₦500,000, B ₦300,000 and C ₦200,000. During the year the partnership earned a net profit of ₦240,000 and incurred a loss of ₦60,000 on a discontinued project, which is to be shared equally. At year‑end the partnership revalued its building, increasing its value by ₦150,000, and the increase is to be credited to the partners' capital accounts in the old profit‑sharing ratio. A new partner D is then admitted. D purchases a 20 % interest for ₦180,000, the cash being added to the partnership's assets (not distributed to the existing partners). Determine the closing capital balances of A, B, C and D after these transactions, assuming no goodwill is recognised separately.