A-LevelAccountingPreparation of financial statements9706/12 · May/June 2017 · Q121 Mark

Which item is not taken into account when a partner joins a partnership?

Abalances on the partners' current accounts

Bcapital introduced by the new partner

Cchanges in the profit sharing ratio

Dgoodwill

✓ Correct answer

A: balances on the partners' current accounts

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2017 Paper 1 Variant 2, question 12.

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