L, M and N are in partnership sharing profits and losses equally.

L retired when the credit balances on her capital and current accounts were $100000 and $40000.

Partnership assets were revalued upwards by $60000.

L took half of the amount due to her on retirement. The other half was left as a loan to the business.

How much was L paid from the partnership bank account on her retirement?

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

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2019 examination, Paper 1 Variant 2 (9706_w19_qp_12.pdf).

Question

L, M and N are in partnership sharing profits and losses equally.

L retired when the credit balances on her capital and current accounts were $100000 and $40000.

Partnership assets were revalued upwards by $60000.

L took half of the amount due to her on retirement. The other half was left as a loan to the business.

How much was L paid from the partnership bank account on her retirement?

Oracle Prep · Accepted Answer

The correct answer is D: $80000.

✓ Correct Answer