Neco 2022 Financial Accounting Question 20

Practice objective / multiple choice question 20 from the 2022 Neco Financial Accounting examination.

Neco 2022 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 20 NECO • 2022 • FINANCIAL_ACCOUNTING • objective

A partnership of A and B shares profits in the ratio 3:2. Their capital balances are \(150,000\) (A) and \(100,000\) (B).\nA new partner C is admitted, bringing in \(80,000\) cash for a 25% share of future profits. Goodwill of the firm is valued at \(60,000\) and is to be shared between A and B in their old profit‑sharing ratio. A building with original cost \(200,000\) and accumulated depreciation \(50,000\) is revalued to its market value of \(250,000\); the upward revaluation surplus is also shared between A and B in the old ratio. After all adjustments, determine the new capital balances of A, B and C.

Answer Options

A. A = 240,000; B = 160,000; C = 80,000
B. A = 250,000; B = 150,000; C = 80,000
Correct Answer C. A = 246,000; B = 164,000; C = 80,000
D. A = 246,000; B = 164,000; C = 70,000
Correct Answer
C
Correct Option:
A = 246,000; B = 164,000; C = 80,000

About This Question

This is Neco 2022 Financial Accounting Question 20. It is one of the objective questions from the 2022 Neco Financial Accounting examination.

Difficulty level: Hard .

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