A partnership earned an average profit during the year of $15000 per month.
Halfway through the year D and E were joined by a new partner F and profits were shared equally before and after the change. In the first half of the year D transferred his private vehicle to the partnership at a valuation of $12000. D's drawings amounted to $60000 during the year.
What was the increase in D's current account balance during the year?

Q: What topic does this question test?

This question tests Partnership Accounts in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Oct/Nov 2016 examination, Paper 1 Variant 2 (9706_w16_qp_12.pdf).

Question

A partnership earned an average profit during the year of $15000 per month.
Halfway through the year D and E were joined by a new partner F and profits were shared equally before and after the change. In the first half of the year D transferred his private vehicle to the partnership at a valuation of $12000. D's drawings amounted to $60000 during the year.
What was the increase in D's current account balance during the year?

Oracle Prep · Accepted Answer

The correct answer is A: $15000.

✓ Correct Answer

📋 Examiner Report & Trap Analysis

🎯 Mark Scheme Breakdown

Unlock the Examiner's Analysis

About This A-Level Accounting Question

Topic

Source

Practice on Oracle Prep

Related Accounting Questions