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.

Accounting
apple devices books business coffee
Photo by Serpstat on Pexels.com

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

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Author: stuart001uk2014

Referral marketing, business, economics and accounting s​pecialist & corporate mentor

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: