Neco Model Questions Vol1 2018 Financial Accounting Question 36
Practice objective / multiple choice question 36 from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
A partnership has two existing partners, A and B, with capitals of ₦120,000 and ₦80,000 respectively, sharing profit in the ratio 3:2. Goodwill of the firm is valued at ₦100,000 and is to be shared between A and B in their old profit‑sharing ratio. Upon admission, assets are revalued: the building increases by ₦30,000 and inventory decreases by ₦10,000; these net revaluations are also allocated between A and B in the same ratio. A new partner C is admitted, bringing in cash of ₦50,000 for a \(\frac{1}{5}\) share of future profits. After all adjustments, the profit for the next year is ₦120,000. What amount of profit will C receive for that year?
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About This Question
This is Neco Model Questions Vol1 2018 Financial Accounting Question 36. It is one of the objective questions from the 2018 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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