A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2020 · Q131 Mark
F and P are in business sharing profits and losses in the ratio 3:1. Their capital account balances are: F 90 000 P 60000 B is introduced as a new partner and invests $50000 as capital. Goodwill is valued at $20000 and is not to be retained in the books of account. The new profit sharing ratio will be 2:2:1 for F, P and B respectively. What is the new capital account balance of F following B's admission?
A$57000
B$83000
C$97000
D$105000
✓ Correct answer
C: $97000
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