Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

X and Y were partners and divided profit and losses equally. They then brought Z into the partnership, and the profit and loss sharing remained equal. The following transactions occurred: 1 Z contributed capital of $50000. 2 Goodwill had a valuation of $30000. No goodwill account is maintained in the books of account. 3 X withdrew a computer from the business valued at $3000. After these transactions had been completed, X’s capital account had a balance of $60000. What was the original balance on X’s capital account?

  • A$55000
  • B$58000
  • C$65000
  • D$75000

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