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

Preparation of financial statements — practice question

Adil and Bashir were in partnership, with profits and losses divided in the ratio $2:1$. Chandra enters the partnership, and profits and losses are then to be split among Adil, Bashir and Chandra in the ratio $3:2:1$. Before Chandra joins the partnership, the balances on the partners’ capital accounts are shown below: Adil: $20000$ Bashir: $10000$ Goodwill is to be valued at $36000$ and is not to remain in the books of account. What is the balance on Adil’s capital account after Chandra joined the partnership?

  • A$20000$
  • B$26000$
  • C$38000$
  • D$44000$

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