Waec Model Questions Vol1 2020 Financial Accounting Question 4
Practice objective / multiple choice question 4 from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
Partners A and B run a business with profit‑sharing ratio 3:2. Their capital balances are A - ₦150,000 and B - ₦100,000. A new partner C is admitted, acquiring a 1/4 share of the profits. C contributes cash of ₦80,000. Goodwill is valued at ₦60,000 and is to be shared between the existing partners in their old profit‑sharing ratio. The partnership also revalues a building: cost ₦200,000, accumulated depreciation ₦50,000, market value ₦250,000. The revaluation surplus is to be shared in the old profit‑sharing ratio. State the amount of revaluation surplus credited to each existing partner and give the final capital balances of A, B and C after C's admission.
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About This Question
This is Waec Model Questions Vol1 2020 Financial Accounting Question 4. It is one of the objective questions from the 2020 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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