Partnership Accounts

Chidi and Musa operate a partnership business under a fixed capital account system. For the year ended 31st December 2025, the following ledger details relate to Musa:

What is the closing balance of Musa's Current Account as at 31st December 2025?

Tunde and Femi are partners in a firm sharing profits and losses equally. During a partnership revaluation, the value of Premises increased by $\text{₦}30,000$, Plant and Machinery decreased by $\text{₦}8,000$, and a Provision for Doubtful Debts of $\text{₦}3,000$ was created. What is Tunde's share of the revaluation profit in naira?

Fatima, Usman, and Segun are partners sharing profits and losses in the ratio $5:3:2$ respectively. On 31st December 2025, they agreed to revalue the firm's assets and liabilities upon a structural reorganization. The revaluation details are as follows:
- Building with a book value of $\text{₦}50,000$ is revalued upwards by $20\%$.
- Furniture with a book value of $\text{₦}20,000$ is written down to $\text{₦}15,000$.
- Provision for doubtful debts, currently standing at $\text{₦}800$, is to be adjusted to $5\%$ of total trade debtors of $\text{₦}30,000$.
- An unrecorded accrued electricity bill of $\text{₦}1,300$ is to be recognized.
- Inventory valued at $\text{₦}18,000$ includes damaged items costed at $\text{₦}3,000$, which can now be sold for only $\text{₦}1,000$.

What is Segun's share of the net revaluation profit or loss?

Match each partnership revaluation transaction on the left with its corresponding double-entry accounting rule on the right.

The net profits of a partnership firm for the last three years were $\text{₦}70,000$, $\text{₦}80,000$, and $\text{₦}90,000$. If goodwill is to be valued at $2$ years' purchase of the average annual profit of the past three years, what is the total value of the firm's goodwill in Naira?

Obinna and Nneka are in a partnership sharing profits and losses in the ratio $3:2$. On 1st July 2025, they agreed to revalue their business assets and liabilities. Land and Buildings (book value $\text{₦}500,000$) was revalued at $\text{₦}650,000$, Plant and Machinery (book value $\text{₦}300,000$) was reduced to $\text{₦}240,000$, a provision for doubtful debts of $5\%$ was created on Debtors of $\text{₦}100,000$, and an unrecorded accrued expense of $\text{₦}15,000$ was recognized. What is Obinna's share of the revaluation profit in Naira ($\text{₦}$)?

Zainab, Chinedu, and Dele are partners in a firm sharing profits and losses in the ratio $5:3:2$ respectively. On 31st March 2026, they agreed to revalue the firm's assets and liabilities upon restructuring. The book values and revaluation terms are given below:

What is the net amount, in Naira (₦), to be credited to Zainab's capital account as her share of the revaluation profit?

Tunde and Wole are partners in a business sharing profits and losses in the ratio of $3:2$. They agree to admit Musa into the partnership for a $\frac{1}{6}$ share of future profits. On Musa's admission, goodwill is valued at $\text{₦}60,000$. If goodwill is raised in the old profit-sharing ratio and immediately written off in the new profit-sharing ratio, what is the net adjustment to Tunde's capital account?

Kemi, Lola, and Musa are in partnership sharing profits and losses in the ratio $3:2:1$ respectively. Lola retires from the firm on December 31, 2025. On that date, Lola's capital account balance stands at $\text{₦}50,000$ (credit) and her current account balance is $\text{₦}4,000$ (credit). Revaluation of partnership assets yields a net profit of $\text{₦}18,000$, and the firm's goodwill is valued at $\text{₦}36,000$. During the accounting period, Lola made drawings amounting to $\text{₦}6,000$. What is the total final amount payable to Lola upon her retirement?

Fill in the blanks with the correct accounting term and numerical figure regarding the retirement of a partner.

Peter and Paul are partners in a trading firm sharing profits and losses in the ratio of $3:2$. They admit Grace into the partnership, granting her a $\frac{1}{5}$ share of the total profits. What is the new profit-sharing ratio of Peter, Paul, and Grace?

Chidi, Ngozi, and Ibrahim are partners sharing profits and losses in the ratio $2:2:1$ respectively. Upon Chidi's retirement, the firm's assets and liabilities are revalued, resulting in a net revaluation profit of $\text{₦}15,000$. What amount in Naira ($\text{₦}$) will be credited to Chidi's capital account as his share of the revaluation profit?

Zainab, Tariq, and Usman are in a partnership sharing profits and losses in the ratio $5:3:2$ respectively. Tariq decides to retire from the firm on December 31, 2025. On this date, Tariq's Capital Account shows a credit balance of $\text{₦}120,000$, while his Current Account has a debit balance of $\text{₦}15,000$.

Additional adjustments agreed upon retirement are:
1. Land and Buildings (book value $\text{₦}200,000$) are revalued upward by $20\%$.
2. Motor Vehicles (book value $\text{₦}80,000$) are revalued downward by $15\%$.
3. Goodwill is valued at $\text{₦}60,000$, and Tariq's share is to be credited to his account without maintaining a Goodwill Account in the books.
4. The General Reserve standing at $\text{₦}50,000$ is to be shared among the partners in their profit-sharing ratio.

What is the net total amount payable to Tariq upon his retirement?

Ibrahim and Kemi are partners sharing profits and losses in the ratio $3:2$. On 1st January 2026, they agreed to revalue their firm's assets and liabilities as follows:

- Building (book value $\text{₦}500,000$) revalued to $\text{₦}620,000$
- Furniture (book value $\text{₦}150,000$) revalued to $\text{₦}120,000$
- Provision for doubtful debts of $5\%$ created on trade debtors of $\text{₦}100,000$
- An unrecorded accrued electricity bill of $\text{₦}15,000$ recognized

What is the amount credited to Ibrahim's capital account as his share of the revaluation profit?

Tayo, Segun, and Femi are partners in a firm sharing profits and losses in the ratio $5:3:2$ respectively. Femi decides to retire from the partnership. On the date of his retirement, a revaluation of the partnership assets resulted in a net profit of $\text{₦}25,000$. What is Femi's share of the revaluation profit?

Match each transaction occurring during the dissolution of a partnership to its correct accounting entry in the ledger.

Segun, Tari, and Danladi are partners sharing profits and losses in the ratio $5:3:2$ respectively. Danladi dies on March 31, 2025. At the date of his death, Danladi's capital account balance was $\text{₦}120,000$ (credit) and his current account balance was $\text{��}15,000$ (credit). The firm's goodwill was valued at $\text{₦}100,000$, and the revaluation of assets yielded a net profit of $\text{₦}30,000$. Danladi's share of profit up to the date of death was calculated as $\text{₦}12,000$, and his drawings during the period were $\text{₦}8,000$. What is the total net amount due to Danladi's estate?

Victor and Raymond are partners in a business sharing profits and losses in the ratio of $3:2$. They admit Kenneth as a new partner, and the new profit-sharing ratio among Victor, Raymond, and Kenneth is agreed at $5:3:2$. Kenneth pays $\text{₦}24,000$ in cash as premium for goodwill. What amount of the goodwill premium (in Naira) should be credited to Victor's capital account?

Complete the sentence below by providing the correct accounting title used upon the death of a partner.

Ade and Ngozi are partners in an engineering firm sharing profits and losses in the ratio of $3:2$. Their capital account balances prior to the admission of a new partner, Emeka, are $\text{₦}120,000$ and $\text{₦}80,000$ respectively. Upon Emeka's admission, the partnership assets are revalued, yielding a net revaluation profit of $\text{₦}30,000$. What is the adjusted capital balance of Ade in Naira after crediting his share of the revaluation profit?