Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

X and Y are partners and they reassess their assets as shown below. Freehold property: book value $50\,000$, revalued amount $71\,000$ Fixtures and fittings: book value $20\,000$, revalued amount $16\,000$ Inventory: book value $15\,000$, revalued amount $13\,000$ X and Y divide profits and losses in the ratio $2:1$. What is X’s share of the revaluation profit?

  • A$5000$
  • B$10\,000$
  • C$14\,000$
  • D$15\,000$

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