Waec Model Questions Vol1 2022 Financial Accounting Question 30

Partners X, Y and Z share profit in the ratio 4:3:3. Their capital balances are ₦200,000, ₦150,000 and ₦150,000 respectively. At dissolution the partnership holds cash ₦120,000, inventory (cost) ₦80,000, and equipment (cost ₦100,000; accumulated depreciation ₦40,000). Liabilities are trade creditors ₦70,000 and a bank loan ₦30,000. An unrecorded goodwill of ₦60,000 is to be shared in the profit‑sharing ratio. Inventory will be sold at a 10 % loss on cost and equipment will be sold for its net book value. After settling liabilities, the remaining cash is to be distributed to the partners in proportion to their capital balances after adding goodwill and after allocating the inventory loss. Determine the amount each partner receives on dissolution.