Gce Model Questions Vol1 2022 Financial Accounting Question 39

Practice objective / multiple choice question 39 from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Gce Model Questions Vol1 2022 Financial Accounting Objective / Multiple Choice Hard Difficulty
Question 39 GCE_MODEL_QUESTIONS_VOL1 • 2022 • FINANCIAL_ACCOUNTING • objective

A partnership of A, B and C shares profit in the ratio 4:3:3. Their capital balances are £40,000, £30,000 and £30,000 respectively. At dissolution the following assets and liabilities are recorded: Machinery cost £50,000, accumulated depreciation £20,000; Stock £15,000; Debtors £12,000; Cash £5,000; Creditors £10,000; Bank loan £8,000. Goodwill is valued at £24,000 and is to be shared in the profit‑sharing ratio. The partnership also owes a loan of £6,000 to A, which will be settled by adjusting capital accounts. How much does each partner receive on dissolution?

Answer Options

A. A: 24,000; B: 19,200; C: 19,200
Correct Answer B. A: 24,800; B: 18,600; C: 18,600
C. A: 25,200; B: 18,400; C: 18,400
D. A: 23,600; B: 19,800; C: 19,800
Correct Answer
B
Correct Option:
A: 24,800; B: 18,600; C: 18,600

About This Question

This is Gce Model Questions Vol1 2022 Financial Accounting Question 39. It is one of the objective questions from the 2022 Gce Model Questions Vol1 Financial Accounting examination.

Difficulty level: Hard .

View More Gce Model Questions Vol1 2022 Financial Accounting Questions More Gce Model Questions Vol1 Practice Questions Back to Questions

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