Waec Model Questions Vol1 2017 Financial Accounting Question 46
Practice objective / multiple choice question 46 from the 2017 Waec Model Questions Vol1 Financial Accounting examination.
A partnership of A, B and C shares profit in the ratio 3:2:1. Their capital balances at 31 December are ₦120,000, ₦80,000 and ₦40,000 respectively. Before admitting a new partner D, the partnership revalues its building upward by ₦30,000, writes down inventory by ₦10,000 and increases a loan by ₦5,000. Goodwill is valued at ₦50,000. D is admitted with a 1/5 share of future profits and agrees to pay cash equal to his share of goodwill plus his share of the net revaluation surplus. What cash amount does D pay on admission?
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About This Question
This is Waec Model Questions Vol1 2017 Financial Accounting Question 46. It is one of the objective questions from the 2017 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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