A-LevelAccountingPreparation of financial statements9706/12 · Feb/Mar 2021 · Q131 Mark
X and Y were in partnership sharing profits and losses equally. Z was admitted as a partner and the profit and loss sharing ratio for X, Y and Z will be 2:2:1 respectively. On the date of admission, the value of non-current assets was increased by $48000. Goodwill was valued at $30000 but would not be retained in the books of account. What was the effect on X's capital account?
Aincreased by $19200
Bincreased by $24000
Cincreased by $27000
Dincreased by $31 200
✓ Correct answer
C: increased by $27000
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