Neco 2017 Financial Accounting Question 42

Practice objective / multiple choice question 42 from the 2017 Neco Financial Accounting examination.

Neco 2017 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 42 NECO • 2017 • FINANCIAL_ACCOUNTING • objective

Partnership A and B share profit in the ratio \(3:2\). Their capital balances are A: ₦120,000 and B: ₦80,000. Goodwill of the partnership is valued at ₦50,000 and is to be shared between the existing partners in their profit‑sharing ratio. At the same time, a revaluation surplus of ₦20,000 on a building is recognized and allocated in the same ratio. A new partner C is admitted for ₦30,000 cash and the profit‑sharing ratio becomes A:B:C = \(2:1:1\). Determine the amount to be credited to each partner's capital account on admission of C.

Answer Options

A. A: ₦150,000; B: ₦100,000; C: ₦30,000
B. A: ₦155,000; B: ₦97,500; C: ₦47,500
C. A: ₦132,000; B: ₦88,000; C: ₦30,000
Correct Answer D. A: ₦162,000; B: ₦108,000; C: ₦30,000
Correct Answer
D
Correct Option:
A: ₦162,000; B: ₦108,000; C: ₦30,000

About This Question

This is Neco 2017 Financial Accounting Question 42. It is one of the objective questions from the 2017 Neco Financial Accounting examination.

Difficulty level: Hard .

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