Accounting Multiple Choice Question – 22 December 2020

X and Y are in partnership sharing the profits equally.

No Goodwill account is maintained in the accounts. Z joins the partnership and pays $30 000 cash for his share of the Goodwill. Profits are to be shared equally between X, Y and Z.

Which of the following correctly shows the increases in the accounts on the admission of Z into the partnership?

Select ONE answer:

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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