Neco Model Questions Vol1 2018 Financial Accounting Question 19

Practice objective / multiple choice question 19 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2018 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 19 NECO_MODEL_QUESTIONS_VOL1 • 2018 • FINANCIAL_ACCOUNTING • objective

Partners A, B and C run a firm with the following capital balances: A - \(\text{₦}120,000\), B - \(\text{₦}80,000\), C - \(\text{₦}100,000\). Their profit‑sharing ratio is 3:2:1. Interest on capital is charged at 10% per annum. Salaries are paid as follows: A - \(\text{₦}30,000\), B - \(\text{₦}20,000\), C - \(\text{₦}0\). Partner B is retiring and goodwill is valued at \(\text{₦}60,000\); the retiring partner is to be compensated for his share of goodwill in the profit‑sharing ratio of the remaining partners. The net profit before adjustments is \(\text{₦}150,000\). After accounting for interest, salaries and goodwill compensation, what amount is transferred to each partner's current account?

Answer Options

A. A: ₦90,000; B: ₦32,000; C: ₦28,000
B. A: ₦85,000; B: ₦35,000; C: ₦30,000
Correct Answer C. A: ₦92,000; B: ₦31,333; C: ₦26,667
D. A: ₦95,000; B: ₦30,000; C: ₦25,000
Correct Answer
C
Correct Option:
A: ₦92,000; B: ₦31,333; C: ₦26,667

About This Question

This is Neco Model Questions Vol1 2018 Financial Accounting Question 19. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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