Accounting Multiple Choice Question – 24 July 2022

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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X and Y are sole traders.

On 1 October 2004 they agreed to form a partnership which would take over the assets of the separate businesses.

At 30 September 2004 the following information was available:

  • Goodwill = X £15 000 & Y £12 000
  • machinery = X £25 000 & Y £18 000
  • stock and debtors = X £8 000 & Y £3 000
  • cash at bank /(overdraft) = X £10 000 & Y overdraft of £(4 000)

What was the total of the tangible assets taken over by the partnership?

Select ONE answer:

  1. £60 000
  2. £64 000
  3. £87 000
  4. £91 000

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 2

  1. Not correct
  2. Correct ==> £15K + £12K + £25K + £18K + £8K + £3K + £10K (the overdraft is to be ignored)
  3. Not correct
  4. Not correct

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