Neco Model Questions Vol1 2023 Financial Accounting Question 49
Practice objective / multiple choice question 49 from the 2023 Neco Model Questions Vol1 Financial Accounting examination.
A partnership of A and B shares profits in the ratio 3:2. Their original capital balances are A: \(\text{₦}200,000\) and B: \(\text{₦}120,000\). The partnership revalues its building from \(\text{₦}300,000\) to \(\text{₦}350,000\); the building had accumulated depreciation of \(\text{₦}50,000\). The revaluation surplus is to be shared in the profit‑sharing ratio. A new partner C is admitted, contributing cash of \(\text{₦}150,000\) for a 25 % share in the partnership. Goodwill is valued at \(\text{₦}80,000\) and is to be shared between the existing partners in their profit‑sharing ratio. After accounting for goodwill and the building revaluation, what amount will be credited to C's capital account on his admission?
Answer Options
About This Question
This is Neco Model Questions Vol1 2023 Financial Accounting Question 49. It is one of the objective questions from the 2023 Neco Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.