Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

P and Q are partners in a partnership. R was taken on as a partner on 1 July 2018, and the ratio for sharing profit and loss among P, Q and R was $2:2:1$ respectively. When admitting R, the partners decided: - goodwill was to be valued at $20000$, but was not to be kept in the books of account - R was to contribute cash of $40000$, together with a motor vehicle valued at $10000$ - R was to receive an annual salary of $5000$ What was the balance on R’s capital account immediately after admission?

  • A$36000
  • B$46000
  • C$51000
  • D$54000

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI