A-LevelAccountingPreparation of financial statements9706/12 · May/June 2019 · Q111 Mark

X and Y are in partnership sharing profits and losses in the ratio 2:1. Z will be admitted with the following new arrangements. Profit and loss sharing ratio will be 2:1:2 respectively. Goodwill is valued at $90000. Z will pay the partners for his share of the goodwill. How much will Z pay X?

A$18000

B$24000

C$45000

D$60000

✓ Correct answer

B: $24000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2019 Paper 1 Variant 2, question 11.

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