A-LevelAccountingPreparation of financial statements9706/12 · May/June 2022 · Q151 Mark
Dua and Noor are in partnership sharing profits and losses equally. They admitted Zee and now share profits and losses in the ratio Dua:Noor:Zee, 2:2:1. On admission of Zee, tangible assets were reduced in value by $20000 and goodwill was valued at $60000, but was not retained in the books of account. What was the net decrease on Noor's capital account?
A$4000
B$8000
C$10000
D$14000
✓ Correct answer
A: $4000
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