Partnership Accounts
GCE Financial Accounting

Ade, Bola and Chuks are in partnership sharing profits and losses in the ratio 3:2:1 respectively. The following balances were extracted from their books on 31 December 2023: Capital Accounts: Ade ₦1…

Emeka and Fatima have been in partnership for several years, sharing profits and losses equally, with no interest on capital or drawings and no salaries. On 1 January 2023, they agreed to admit Garba …

In a partnership, the purpose of a partners' current account is to record

Chidi, Emeka, and Funke are partners with fixed capitals of ₦200,000, ₦150,000, and ₦100,000 respectively. The partnership agreement allows interest on capital at 10% per annum. What is the total inte…

Tunde and Segun are partners sharing profits equally. Tunde is entitled to a salary of ₦30,000 per annum. The net profit before charging the salary was ₦90,000. What is Segun's share of the residual p…

Which of the following accounts is credited when a new partner introduces capital into a partnership?

Kola, Musa, and Ngozi share profits in the ratio 4:3:3. Ngozi retires and her share is acquired by Kola and Musa in the ratio 3:2. What is the new profit-sharing ratio of Kola and Musa?

Kola, Musa, and Ngozi share profits in the ratio 4:3:3. Ngozi retires and her share is taken over by Kola and Musa equally. What is the new profit-sharing ratio of Kola and Musa after Ngozi's retireme…

A partnership's Balance Sheet shows: Capital accounts ₦500,000; Current accounts (credit balances) ₦80,000; Loan from partner ₦120,000; Trade creditors ₦60,000. What is the total of partners' equity i…

On the admission of a new partner, goodwill is raised and then written off immediately. The journal entry to write off goodwill among the OLD partners in the ratio 2:1 where goodwill is valued at ₦60,…

Ade and Bola are partners sharing profits and losses in the ratio 3:2. The partnership made a net profit of ₦150,000. How much profit is credited to Ade's current account?