Gce Model Questions Vol1 2020 Financial Accounting Question 8
Practice objective / multiple choice question 8 from the 2020 Gce Model Questions Vol1 Financial Accounting examination.
Three partners A, B and C share the profit of their business in the ratio 3 : 2 : 1. Their capital contributions are A = \(60{,}000\), B = \(40{,}000\) and C = \(20{,}000\) (all amounts in \(\text{₦}\)). Interest on capital is charged at 5 % per annum. Salaries are paid to A and B at \(15{,}000\) and \(10{,}000\) respectively; C receives no salary. The partnership has goodwill of \(30{,}000\) which is amortised equally over 5 years, giving an annual amortisation charge of \(6{,}000\) that is shared equally among the partners. The profit before any of these deductions for the year is \(121{,}000\). Calculate the total amount transferred to each partner's capital account at year‑end.
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About This Question
This is Gce Model Questions Vol1 2020 Financial Accounting Question 8. It is one of the objective questions from the 2020 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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