Waec Model Questions Vol1 2020 Financial Accounting Question 14
Practice objective / multiple choice question 14 from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
Three partners - A, B and C - run a business with profit‑sharing ratios of 3:2:1. Their original capital balances are A ₦120,000, B ₦80,000 and C ₦60,000. During the year the following revaluations are made: - Building is found to be undervalued by ₦30,000. - Inventory is undervalued by ₦10,000. Goodwill of ₦60,000 is recognised and is shared in the existing profit‑sharing ratio. A new partner D is admitted, contributing cash of ₦50,000 for a 20 % share of the partnership. After admission the profit‑sharing ratio becomes A : B : C : D = 2.5 : 1.5 : 1 : 2. What is the amount of capital that will be shown in D's capital account after admission? (Round to the nearest naira.)
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About This Question
This is Waec Model Questions Vol1 2020 Financial Accounting Question 14. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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