Gce Model Questions Vol1 2022 Financial Accounting Question 25

Practice objective / multiple choice question 25 from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 25 GCE_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

Partners A and B originally share profits in the ratio 3:2. The partnership's goodwill is valued at \(\text{₦}120,000\). New partner C is admitted, contributing \(\text{₦}48,000\) for a 20% share of future profits. Existing partners agree that goodwill will be shared between A and B in their old profit‑sharing ratio. After admission, a piece of equipment is re‑valued, giving a gain of \(\text{₦}15,000\) which will be shared according to the new profit‑sharing ratio. Determine: (a) The new profit‑sharing ratio among A, B and C. (b) The amount of the re‑valuation gain each partner will receive.

Answer Options

A. Ratio 12:8:5; A receives ₦7,500, B receives ₦4,500, C receives ₦3,000
B. Ratio 12:8:5; A receives ₦9,000, B receives ₦6,000, C receives ₦0
C. Ratio 3:2:1; A receives ₦7,500, B receives ₦5,000, C receives ₦2,500
Correct Answer D. Ratio 12:8:5; A receives ₦7,200, B receives ₦4,800, C receives ₦3,000
Correct Answer
D
Correct Option:
Ratio 12:8:5; A receives ₦7,200, B receives ₦4,800, C receives ₦3,000

About This Question

This is Gce Model Questions Vol1 2022 Financial Accounting Question 25. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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