A-LevelAccountingPreparation of financial statements9706/12 · May/June 2021 · Q131 Mark
V and E are in partnership, sharing profits and losses equally. Their capital accounts showed the following credit balances at 31 March 2021. $ V 80 000 E 40 000 Z was admitted as a partner on 1 April 2021. At that date the following items were taken into account. 1 Non-current assets were revalued downwards by $20000. 2 Goodwill was valued at $80000, but will not remain in the books of account after Z is admitted. The new profit-sharing ratio will be V 40%, E 30% and Z 30%. What was the balance on E's capital account after the admission of Z?
A$30000
B$46000
C$56 000
D$70000
✓ Correct answer
B: $46000
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