Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

X and Y run a partnership. Z joined the partnership on 1 July 2018. It was further agreed that, on that date: 1 The assets of the partnership would be revalued upward by $48000$. 2 Goodwill would be valued at $20000$, but no goodwill account would be kept in the books of account. 3 Z would contribute $80000$ cash. 4 The profit and loss sharing ratio would be X, Y and Z, $2:1:1$ respectively. What was the balance on Z’s capital account immediately after the admission?

  • A$63000$
  • B$75000$
  • C$87000$
  • D$97000$

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