X and Y were in partnership sharing profit and losses equally. They then admitted Z into the partnership and profits and losses were still shared equally. The following transactions took place. 1 Z introduced capital of $50000. 2 Goodwill was valued at $30000. No goodwill account is kept in the books of account. 3 X took a computer from the business at a value of $3000. After these transactions had taken place, the balance on X's capital account was $60000. What was the opening balance on X's capital account?

Q: What topic does this question test?

This question tests Partnership Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting May/June 2016 examination, Paper 1 Variant 2 (9706_s16_qp_12.pdf).

Question

X and Y were in partnership sharing profit and losses equally. They then admitted Z into the partnership and profits and losses were still shared equally. The following transactions took place. 1 Z introduced capital of $50000. 2 Goodwill was valued at $30000. No goodwill account is kept in the books of account. 3 X took a computer from the business at a value of $3000. After these transactions had taken place, the balance on X's capital account was $60000. What was the opening balance on X's capital account?

Oracle Prep · Accepted Answer

The correct answer is B: $58000.

✓ Correct Answer

📋 Examiner Report & Trap Analysis

🎯 Mark Scheme Breakdown

Unlock the Examiner's Analysis

About This A-Level Accounting Question

Topic

Source

Practice on Oracle Prep

Related Accounting Questions