Paper 1 May/June 2011 Accounting (9706/11) A Level
X and Y were in partnership sharing profits and losses equally.
Z was admitted as a partner and the profit and loss sharing ratio for X, Y and Z will be 2 :2 :1
respectively.
On the date of admission, the value of non-current assets was increased by $48 000.
Goodwill was valued at $30 000 but would not be retained in the books of account.
What was the effect on X’s capital account?