A-LevelAccountingPreparation of financial statements9706/12 · May/June 2020 · Q131 Mark

X, Y and Z were in partnership, sharing profits equally. When Z retired from the business the assets were revalued. Goodwill was also valued but was not retained in the books of accounts. Which statement about Z's retirement is correct?

AOnly X and Y's capital accounts will be adjusted for the revaluation.

BOnly X and Y's capital accounts will be adjusted for goodwill.

CThe balance on Z's current account will form part of her retirement settlement.

DZ may only be paid in cash for her share on retirement.

✓ Correct answer

C: The balance on Z's current account will form part of her retirement settlement.

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Preparation of financial statements and see which topics are most likely to come up next.

About this question

Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, May/June 2020 Paper 1 Variant 2, question 13.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

X, Y and Z were in partnership, sharing profits equally. When Z retired from the business the assets were revalued. Goodwill was also valued but was not retained in the books of accounts. Which statement about Z's retirement is correct?

✓ Correct answer

Practise more questions on this topic

About this question

Related Accounting questions