Waec Model Questions Vol1 2024 Financial Accounting Question 44
Practice objective / multiple choice question 44 from the 2024 Waec Model Questions Vol1 Financial Accounting examination.
A partnership between A and B shares profit in the ratio 3:2. Their capital balances at the beginning of the year are A - ₦120,000 and B - ₦80,000. The partnership earned a net profit of ₦50,000 for the year. A new partner, C, is to be admitted. C will receive a 1/5 share of future profits and will contribute cash on admission. The goodwill of the business is valued at ₦30,000 and is to be shared between the existing partners in their old profit‑sharing ratio. C also brings a piece of equipment whose fair value is ₦20,000 but whose book value is ₦12,000. Determine the amount of cash that C must pay to the partnership on admission.
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About This Question
This is Waec Model Questions Vol1 2024 Financial Accounting Question 44. It is one of the objective questions from the 2024 Waec Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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