SECTION B Question One Bobby and Ladi are in partnership sharing profits or losses in ratio 2:1 respectively. On October 31, 2019, the partners decided to dissolve the partnership. The statement of financial position at that date is set out below: N'000 N'000 Non-current Assets: Plant and equipment 75,000 Motor vehicles 15.000 90,000 Current Assets: Inventories 120,000 Accounts receivable 36,000 Bank balance 12,000 168,000 258.000 Capital: Bobby Ladi 120,000 30.000 150,000 108.000 258,000 Accounts payable Notes: i. The plant and equipment were sold at N79m ii. Bobby took over one of the vehicles for NO.8m. The remaining vehicles were sold for N12m. iii. Inventories were sold for N92m while account receivable realised N34.3m iv. The account payable gave a discount of No.10 on every NI owed. V. The realisation expenses were settled for N4.5m You are required to prepare: a) Realisation Account b) Capital Accounts c) Bank Account Question Two Kofi and Keffi have been trading in partnership for many years and were sharing profits and losses in ratio 3:2. Agip was admitted on 1 October 2018. The profit and loss sharing ratio was adjusted to 4:3:1 respectively. Agip is guaranteed a minimum profit of 3.4million. Prepare a schedule to show the distribution of profit when the total divisible profit amounted to N16 million i. If both Kofi and Keffi guaranteed the minimum profit. ii. If only Kofi guaranteed the minimum profit (10 marks) Question Three Adeleke and co intend to admit a new partner into their partnership business. They have provided you with the following information. a) Capital employed N90 million b) Rate of return in their industry 15% c) The profits of ABC Partnership firm for 5 year ended 31 December 2018 were as follows: Year Profits 2014 10,000,000 2015 17,500,000 2016 19,000,000 2017 17,000,000 2018 21,000,000 Calculate the value of goodwill where the partners have decided to value goodwill at: i. 3 years purchase of Average Profit ii. 5 years purchase of Weighted Average Profit iii. 10 years purchase of the Super profit (15 marks)