Neco 2017 Financial Accounting Question 2
Practice objective / multiple choice question 2 from the 2017 Neco Financial Accounting examination.
Partners A and B share profits in the ratio 3:2. Their capital balances are A ₦120,000 and B ₦80,000. Goodwill of the firm is valued at ₦60,000 and is to be shared in the old profit‑sharing ratio. A new partner C is admitted with a 40 % share of future profits and brings in cash equal to his share of goodwill. At the same time, land is revalued upward by ₦30,000 and the revaluation surplus is shared between the old partners in their profit‑sharing ratio. Determine the amount of capital recorded for the new partner C on admission.
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About This Question
This is Neco 2017 Financial Accounting Question 2. It is one of the objective questions from the 2017 Neco Financial Accounting examination.
Difficulty level: Hard .
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