Accounting 9706 · AS & A Level · Accounting for non-current assets

Accounting for non-current assets — practice question

X and Y had already been partners for several years when Z joined the partnership as a partner. On that date, after a revaluation, the premises account was debited with $120000$. Profits were divided equally both before Z joined and after Z’s admission. What were the credit entries used to record the revaluation?

  • Acapital accounts X $40000$, Y $40000$, Z $40000$
  • Bcapital accounts X $60000$, Y $60000$
  • Ccurrent accounts X $40000$, Y $40000$, Z $40000$
  • Dcurrent accounts X $60000$, Y $60000$

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