Waec Model Questions Vol1 2021 Financial Accounting Question 45
Practice objective / multiple choice question 45 from the 2021 Waec Model Questions Vol1 Financial Accounting examination.
Three partners A, B and C share profits in the ratio 3:2:1. Their capitals are A ₦120,000, B ₦80,000 and C ₦40,000. At the beginning of the year the partnership agrees to pay A a fixed salary of ₦12,000 and to charge interest on capital at 10% per annum to each partner. The partnership earns a net profit before these adjustments of ₦84,000. After allocating salary, interest and the remaining profit according to the sharing ratio, a new partner D is admitted, contributing goodwill of ₦30,000 which is to be shared among the existing partners in their profit‑sharing ratio. What total amount will be added to partner C's capital account at year‑end?
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About This Question
This is Waec Model Questions Vol1 2021 Financial Accounting Question 45. It is one of the objective questions from the 2021 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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