Neco Model Questions Vol1 2025 Financial Accounting Question 10

A partnership of three partners X, Y and Z shares profit and loss in the ratio 4:3:3. Their capital balances at the beginning of the year are X = \(\text{₦}150,000\), Y = \(\text{₦}120,000\), Z = \(\text{₦}130,000\). During the year the partnership earned a net profit of \(\text{₦}84,000\) which has not yet been distributed. At the end of the year the partnership is dissolved. The following events occur:\n\n- A building with book value \(\text{₦}250,000\) is sold for \(\text{₦}280,000\).\n- Inventory with book value \(\text{₦}40,000\) is sold for \(\text{₦}38,000\).\n- Outstanding debts amount to \(\text{₦}70,000\) which are to be paid.\n- Any gain or loss on the sale of the building and inventory is to be shared in the profit‑loss ratio.\n- After paying the debts, the remaining cash is to be distributed among the partners in the profit‑loss ratio.\n\nHow much cash will each partner receive on dissolution?