A-LevelAccountingPartnership AccountsFeb/Mar 2020Paper 1 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
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The correct answer is C. This question tests the candidate's understanding of partnership accounts within the Accountingsyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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