Waec Model Questions Vol1 2019 Financial Accounting Question 28
Practice objective / multiple choice question 28 from the 2019 Waec Model Questions Vol1 Financial Accounting examination.
A partnership of A, B and C shares profit in the ratio 3:2:1. Their opening capital balances are A ₦120,000, B ₦80,000 and C ₦55,000. During the year the partnership re‑values its building from ₦200,000 to ₦260,000. The revaluation surplus is shared in the profit‑sharing ratio. After revaluation the partnership earns a profit of ₦90,000, also shared in the same ratio. A new partner D is admitted with a 1/5 share in profits. D pays cash equal to the average of the existing partners' capital after the revaluation and profit allocation. Determine (a) the amount of cash D must pay, and (b) the capital balances of A, B, C and D immediately after D's admission.
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About This Question
This is Waec Model Questions Vol1 2019 Financial Accounting Question 28. It is one of the objective questions from the 2019 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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