Accounting Multiple Choice Question – 10 May 2022

Harold, Donald and Edgar are in partnership.

Donald is retiring and the following terms have been agreed.

Goodwill is valued at £35,000 but will not be retained in the books of account.

Net assets are revalued downwards.

Which double-entries in the capital account of Donald record these adjustments?

Select ONE answer:

1. goodwill – credit & revaluation of assets – credit
2. goodwill – credit & revaluation of assets – debit
3. goodwill – debit & revaluation of assets – credit
4. goodwill – debit & revaluation of assets – debit

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 2

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

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