A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2019 · Q141 Mark

P and Q are in partnership. R was admitted as a partner on 1 July 2018, and the profit and loss sharing ratio among P, Q and R was 2:2:1 respectively. For the purpose of R's admission, the partners agreed: goodwill would be valued at $20000, but not retained in the books of account R would introduce cash, $40000, and motor vehicle, $10000 R would be entitled to an annual salary, $5000. What was R's capital account balance immediately after his admission?

A$36000

B$46000

C$51000

D$54000

✓ Correct answer

B: $46000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2019 Paper 1 Variant 2, question 14.

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