Waec Model Questions Vol1 2019 Financial Accounting Question 23
Practice objective / multiple choice question 23 from the 2019 Waec Model Questions Vol1 Financial Accounting examination.
Partners A and B currently have capital balances of ₦200,000 and ₦120,000 respectively and share profit in the ratio 3:2. A new partner C is admitted. C brings cash equal to the goodwill of ₦84,000. Goodwill is to be shared between A and B in their old profit‑sharing ratio. At the same time the partnership revalues a building, increasing its value by ₦60,000, which is also shared between A and B in the old ratio. After admission the profit‑sharing ratio becomes A:B:C = 2:2:1. Determine the new capital balances of A, B and C immediately after C's admission.
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About This Question
This is Waec Model Questions Vol1 2019 Financial Accounting Question 23. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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