Gce Model Questions Vol1 2022 Financial Accounting Question 37
Practice objective / multiple choice question 37 from the 2022 Gce Model Questions Vol1 Financial Accounting examination.
Partners A and B share profits in the ratio 3:2. Their capital balances are £40,000 and £30,000 respectively. Goodwill is valued at £30,000 and a revaluation surplus on the partnership building of £12,000 is to be distributed in the profit‑sharing ratio. On 1 July a new partner C is admitted. C will receive a one‑fourth share of future profits. C pays cash equal to his share of goodwill, plus half of the revaluation surplus, plus his share of the revaluation surplus that will be credited to his capital account. How much cash does C pay on admission?
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About This Question
This is Gce Model Questions Vol1 2022 Financial Accounting Question 37. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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