Neco 2017 Financial Accounting Question 4
Practice objective / multiple choice question 4 from the 2017 Neco Financial Accounting examination.
Partners X, Y and Z share profits in the ratio 2:1:1. Their capital balances are X ₦150,000, Y ₦90,000 and Z ₦60,000. On dissolution, the partnership's assets are: cash ₦80,000, inventory at cost ₦70,000, equipment (net book value) ₦50,000 and an outstanding receivable of ₦20,000. Liabilities consist of a loan of ₦40,000 and creditors owed ₦30,000. Goodwill is valued at ₦30,000 and is to be shared in the profit‑sharing ratio. The receivable of ₦20,000 is written off as a bad debt. Determine the amount of cash each partner receives after all liabilities are settled, the bad debt is written off, and goodwill is distributed.
Answer Options
About This Question
This is Neco 2017 Financial Accounting Question 4. It is one of the objective questions from the 2017 Neco Financial Accounting examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.