A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2016 · Q141 Mark
X and Y have capital accounts of $50000 each and share profits equally. They plan to admit Z into partnership. The new profit sharing ratio will be 2:2:1. The balances on the capital accounts will also be in this ratio. Goodwill is valued at $20000 and will not be retained in the books of account. How much cash will Z need to pay to join the partnership?
A$25000
B$26.000
C$29000
D$30000
✓ Correct answer
D: $30000
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