A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2018 · Q151 Mark
J and K shared profits equally. Their capital account balances were J $400000 and K $160000. L was admitted as a partner. The three partners then shared profits equally. On admission of L as a partner, assets were increased in value by $210000. L paid in capital equal to the average new capital balances of J and K. What was the capital paid in by L?
A$175000
B$280 000
C$350 000
D$385000
✓ Correct answer
D: $385000
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