Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

X, Y and Z were partners and divided profits and losses in equal proportions. Z left the partnership on 31 March 2022. His capital account and current account balances were $85000 and $7000 debit respectively. Following Z’s retirement, X and Y would share profits and losses equally. Goodwill was valued at $24000 and was not to stay in the books of accounts. As part of the amount owing to him, Z took a motor vehicle at an agreed value of $4000. The other non-current assets were written down by $15000. The balance still due to Z would be settled equally by X and Y. What amount would X pay to Z?

  • A$36500
  • B$37500
  • C$38500
  • D$45500

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