Day: May 9, 2022

Ken and Harold had been in partnership sharing profits and losses equally.

On 1 July 2021, Edgar was admitted as partner and the three partners shared profits and losses equally.

On that date assets were revalued and there was a profit on revaluation, £36 000.

What were the accounting entries to record the profit on revaluation?

Select ONE answer:

1. credit Ken current account £18,000, credit Harold current account £18,000
2. credit Ken current account £12,000, credit Harold current account £12,000, credit Edgar current account £12,000
3. credit Ken capital account £18,000, credit Harold capital account £18,000
4. credit Ken capital account £12,000, credit Harold capital account £12,000, credit Edgar capital account £12,000

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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