Paper 2 · Specimen 2026 · Partnership Accounts
Freehold property with a book value of $130 000 was sold on dissolution of a partnership at 10% above its book value. Calculate the sale proceeds received for the freehold property.
A$143 000, calculated as the book value plus 10%.
B$130 000, the unchanged book value of the property.
C$117 000, calculated as the book value less 10%.
D$156 000, calculated as the book value plus 20%.
Explanation
Selling at 10% above book value means proceeds = book value x 1.10. $130 000 x 1.10 = $143 000.
Derived from ZIMSEC Accounting Paper 2, specimen 2026, Q2