A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2019 · Q151 Mark
L and M are in partnership sharing the profits equally. No goodwill account is maintained in the accounts. N joins the partnership and pays $30000 cash for his share of the goodwill. Profits are to be shared equally between L, M and N. What are the increases in the capital accounts on the admission of N into the partnership?
AL 10000, M 10000, N 10000
BL -, M -, N 30000
CL 15000, M 15000, N -
DL -, M -, N -
✓ Correct answer
C: L 15000, M 15000, N -
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