Neco Model Questions Vol1 2024 Financial Accounting Question 28

Practice objective / multiple choice question 28 from the 2024 Neco Model Questions Vol1 Financial Accounting examination.

Neco Model Questions Vol1 2024 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 28 NECO_MODEL_QUESTIONS_VOL1 • 2024 • FINANCIAL_ACCOUNTING • objective

Three partners A, B and C share profits in the ratio 3:2:1. Their capital balances are A \(120,000\), B \(80,000\) and C \(40,000\). A new partner D is admitted, bringing in cash of \(60,000\) for a 20 % share of profits. Goodwill is valued at \(30,000\) and is to be shared among the existing partners in their profit‑sharing ratio. The partnership's building is re‑valued upwards by \(50,000\), the increase being shared in the same ratio. After D's admission, determine the capital balances of A, B, C and D.

Answer Options

Correct Answer A. A ₦160,000; B ₦106,667; C ₦53,333; D ₦80,000
B. A ₦135,000; B ₦90,000; C ₦45,000; D ₦60,000
C. A ₦145,000; B ₦96,667; C ₦48,333; D ₦60,000
D. A ₦146,667; B ₦106,667; C ₦66,667; D ₦60,000
Correct Answer
A
Correct Option:
A ₦160,000; B ₦106,667; C ₦53,333; D ₦80,000

About This Question

This is Neco Model Questions Vol1 2024 Financial Accounting Question 28. It is one of the objective questions from the 2024 Neco Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

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