A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2017 · Q141 Mark
X, Y and Z had been in partnership, sharing profits and losses in the ratio of 2:2:1. On 1 January 2017, Y retired. The balances of his capital and current accounts were as shown. [Table: capital account $50000, current account $6400 debit] Y took over a motor van at an agreed value of $3800. The net book value of the motor van was $4800. Goodwill was valued at $30000. The value of all other assets at 1 January 2017 would remain unchanged. How much cash was Y entitled to when he retired?
A$51400
B$51800
C$55 200
D$64 200
✓ Correct answer
A: $51400
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