A and B were in partnership sharing profits and losses equally when they decided to retire. Details of the realisation are shown in the table. book value $000 realised value $000 non-current assets 50 65 current assets excluding cash and bank 25 23 cash and bank balances 4 - current liabilities 18 14 costs of realisation 1 How much profit was each partner entitled to on realisation?

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

A and B were in partnership sharing profits and losses equally when they decided to retire. Details of the realisation are shown in the table. book value $000 realised value $000 non-current assets 50 65 current assets excluding cash and bank 25 23 cash and bank balances 4 - current liabilities 18 14 costs of realisation 1 How much profit was each partner entitled to on realisation?

Oracle Prep · Accepted Answer

The correct answer is A: $8000.

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