Waec Model Questions Vol1 2024 Financial Accounting Question 36
Practice objective / multiple choice question 36 from the 2024 Waec Model Questions Vol1 Financial Accounting examination.
A partnership of A and B shares profit in the ratio 3:2. Their capital balances are ₦120,000 and ₦80,000 respectively. The partnership revalues a building, increasing its value by ₦50,000, and a machine, decreasing its value by ₦20,000. A new partner C is admitted, paying ₦150,000 for a one‑quarter (1/4) share in the partnership. The agreement states that any goodwill arising on admission is to be shared between the existing partners in their old profit‑sharing ratio. Determine the amount of goodwill that should be credited to A's and B's capital accounts.
Answer Options
About This Question
This is Waec Model Questions Vol1 2024 Financial Accounting Question 36. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
Master the Exam!
You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.