=+(2) On conversion, the non-current assets were valued at €170,000 and the partners decided that book debts were overstated as their customer X Limited had been declared bankrupt, whilst owing €8,000 to the partnership. Discussions with the receiver indicated they were only expecting to receive 25 cents for every €1 outstanding by X Limited to the partnership. 5% of the remaining general debt was also deemed to be non-collectible and, accordingly, it was agreed to provide for this amount before the book debts were transferred.