A-LevelAccountingPreparation of financial statements9706/12 · May/June 2013 · Q151 Mark

X and Y have been in partnership for some years sharing profits in the ratio of 3:2. Z joins the partnership and introduces cash of $40000. The profit-sharing will now be X - 40%, Y - 30% and Z - 30%. Goodwill is valued at $60000. After joining the partnership, what is the balance of Z's capital account?

A$18000 credit

B$22000 debit

C$22000 credit

D$40000 credit

✓ Correct answer

C: $22000 credit

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2013 Paper 1 Variant 2, question 15.

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