A-LevelAccountingPreparation of financial statements9706/12 · May/June 2012 · Q111 Mark
X and Y are in partnership sharing the profits equally. No goodwill account is maintained in the accounts. Z joins the partnership and pays $30 000 cash for his share of the goodwill. Profits are to be shared equally between X, Y and Z. What are the increases in the capital accounts on the admission of Z into the partnership? capital accounts X $ Y $ Z $ 10 000 10 000 10 000 – 30 000 15 000 15 000 – –
AX $10 000, Y $10 000, Z $10 000
BX –, Y –, Z $30 000
CX $15 000, Y $15 000, Z –
DX –, Y –, Z –
✓ Correct answer
C: X $15 000, Y $15 000, Z –
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