Gce Model Questions Vol1 2017 Financial Accounting Question 47
Practice objective / multiple choice question 47 from the 2017 Gce Model Questions Vol1 Financial Accounting examination.
Partners A and B currently share profits in the ratio 3:2. Their capital balances are A £50,000 and B £30,000. The partnership makes a net profit of £24,000 for the year. New partner C is admitted with a one‑third share of future profits. Existing partners agree to give up part of their profit shares proportionally to accommodate C, and to share goodwill of £12,000 equally between A and B. The partnership also revalues a building, increasing its value by £10,000, which is to be shared in the new profit‑sharing ratio. How much cash must C contribute on admission?
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About This Question
This is Gce Model Questions Vol1 2017 Financial Accounting Question 47. It is one of the objective questions from the 2017 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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