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?

Q: What topic does this question test?

This question tests Partnerships in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2017 examination, Paper 1 Variant 2 (9706_w17_qp_12.pdf).

Question

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?

Oracle Prep · Accepted Answer

The correct answer is A: $51400.

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