O-LevelAccountingSources and recording of data7707/12 · May/June 2018 · Q211 Mark
Y and Z formed a partnership and agreed to share profits equally. Y deposited $30000 into the business bank account. Z introduced a motor vehicle worth $15000 and goodwill of $15000. How should these transactions be recorded in the books of the partnership?
Aaccounts to be debited: bank 30000, goodwill 15000, motor vehicle 15000; accounts to be credited: capital Y 30000, capital Z 30000
Baccounts to be debited: bank 30000, goodwill 15000, motor vehicle 15000; accounts to be credited: capital Y 37500, capital Z 22500
Caccounts to be debited: capital Y 30000, capital Z 30000; accounts to be credited: bank 30000, goodwill 15000, motor vehicle 15000
Daccounts to be debited: capital Y 37500, capital Z 22500; accounts to be credited: bank 30000, goodwill 15000, motor vehicle 15000
✓ Correct answer
A: accounts to be debited: bank 30000, goodwill 15000, motor vehicle 15000; accounts to be credited: capital Y 30000, capital Z 30000
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