Question 2
Question 2 of 3

Question image for Q2
Topics Tested

the effect on profit/loss and asset value of the incorrect treatment of capital and revenue expenditure

how to prepare partners’ capital and current accounts to record changes required in respect of goodwill and revaluation of assets on: a change in the partners’ profit-sharing ratio, the introduction of a new partner, the retirement of an existing partner, the dissolution of a partnership