A-LevelAccountingPartnershipsMay/June 2015Paper 1 Q131 Mark
Kay and Lay share profits and losses in the ratio of 3:1. Capital account balances are Kay $100000 and Lay $84000. There was no goodwill account in the books. The partners change the profit sharing ratio to 4:1. Goodwill is valued at $54000 and is not to be retained in the books of account. What is the balance on Lay's capital account after the adjustment for goodwill?
A$70500
B$81300
C$86 700
D$97 500
✓ Correct Answer
The correct answer is C. This question tests the candidate's understanding of partnerships 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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