A-LevelAccountingPartnership AccountsMay/June 2020Paper 1 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
The correct answer is C. This question tests the candidate's understanding of partnership accounts within the Accountingsyllabus. The examiner's mark scheme requires...
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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