A-LevelAccountingPreparation of financial statements9706/12 · May/June 2018 · Q141 Mark

X and Y had been in partnership for some years when Z was admitted as a partner. On that date the premises account was debited with $120000 following a revaluation. Profits were shared equally both before and after Z's admission. What were the credit entries recording the revaluation?

Acapital accounts X $40000, Y $40000, Z $40000

Bcapital accounts X $60000, Y $60000

Ccurrent accounts X $40000, Y $40000, Z $40000

Dcurrent accounts X $60000, Y $60000

✓ Correct answer

B: capital accounts X $60000, Y $60000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2018 Paper 1 Variant 2, question 14.

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X and Y had been in partnership for some years when Z was admitted as a partner. On that date the premises account was debited with $120000 following a revaluation. Profits were shared equally both before and after Z's admission. What were the credit entries recording the revaluation?

✓ Correct answer

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