Gce Model Questions Vol1 2024 Financial Accounting Question 38
Practice objective / multiple choice question 38 from the 2024 Gce Model Questions Vol1 Financial Accounting examination.
Three original partners A, B and C share profit in the ratio 3:2:1. The partnership's net assets (after revaluation) are: - Cash \(\text{₦}150,000\) - Debtors \(\text{₦}80,000\) - Inventory \(\text{₦}70,000\) - Equipment (book value \(\text{₦}100,000\), market value \(\text{₦}130,000\)) The equipment is revalued upward by \(\text{₦}30,000\), to be shared according to the profit‑sharing ratio. A new partner D is admitted, bringing in \(\text{₦}50,000\) cash for a 20 % share of future profits. The partners agree that D will also receive a 20 % share of the revaluation surplus. Determine the total amount that will be credited to D's capital account on admission.
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About This Question
This is Gce Model Questions Vol1 2024 Financial Accounting Question 38. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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