Neco Model Questions Vol1 2017 Financial Accounting Question 10

Three partners A, B and C share profits in the ratio 3:2:1. Their capital balances are A: \(\text{₦}120,000\), B: \(\text{₦}80,000\), C: \(\text{₦}40,000\). A new partner D is admitted, contributing \(\text{₦}60,000\) for a 20 % share of future profits. At the same time the partnership revalues a building whose original cost is \(\text{₦}150,000\) and current market value is \(\text{₦}198,000\). The revaluation surplus is to be shared among the existing partners in their original profit‑sharing ratio. Goodwill of \(\text{₦}30,000\) is recognised and is to be shared equally among all four partners. After admission, the revaluation surplus and goodwill are transferred to the partners' capital accounts. Compute the new capital balance of each partner (A, B, C and D) after these adjustments.