A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2013 · Q171 Mark

X becomes a partner in a business receiving a 25% share in the profits. He pays $50000 for his capital. The goodwill of the business is valued at $40000. What is the balance on X's capital account, if goodwill is not included in the books?

A$20000

B$50000

C$60000

D$70000

✓ Correct answer

B: $50000

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Topic: Preparation of financial statements, A-Level Accounting (syllabus 9706). Multiple choice, 1 mark.
Source: A-Level Accounting, Oct/Nov 2013 Paper 1 Variant 2, question 17.

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