A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2017 · Q151 Mark
S and T are in partnership, sharing profits and losses in the ratio 2:1. The balances on their capital accounts at 31 March 2017 were: [Table: capital account S $40000, capital account T $20000, Total $60000]. On 1 April 2017 the partners decide to change the profit-sharing ratio to 3:2. Goodwill is to be valued at $30000 and is not to be retained in the books of account. What is the new balance of T's capital account?
A$18000
B$20 000
C$22000
D$30000
✓ Correct answer
A: $18000
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