Neco Model Questions Vol1 2021 Financial Accounting Question 33

Practice objective / multiple choice question 33 from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2021 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 33 NECO_MODEL_QUESTIONS_VOL1 • 2021 • FINANCIAL_ACCOUNTING • objective

Partners A and B run a partnership with a profit‑sharing ratio of 3:2. The firm's goodwill is valued at ₦120,000. New partner C is admitted and pays ₦48,000 as his share of goodwill. The goodwill is shared among the existing partners according to their old profit‑sharing ratio. At the same time, a building is revalued upward by ₦30,000; the revaluation surplus is also shared according to the old ratio. After C's admission, the profit‑sharing ratio becomes A : B : C = 2 : 1 : 2. The partnership earned a net profit before any adjustments of ₦200,000 for the year. Determine the amount of profit allocated to each partner for the year.

Answer Options

A. A: ₦115,200; B: ₦57,600; C: ₦115,200
Correct Answer B. A: ₦120,800; B: ₦60,400; C: ₦120,800
C. A: ₦124,000; B: ₦62,000; C: ₦124,000
D. A: ₦120,000; B: ₦60,000; C: ₦120,000
Correct Answer
B
Correct Option:
A: ₦120,800; B: ₦60,400; C: ₦120,800

About This Question

This is Neco Model Questions Vol1 2021 Financial Accounting Question 33. It is one of the objective questions from the 2021 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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