=+Question 5 (Based on ICAI, P2 Autumn 2000)

Rod, Hook and Bait are in partnership sharing profits in the ratio 6: 4: 2. The balance sheet of the partnership as at 31 December 1998 was as follows:

€'000 €'000 Non-current assets 2,000 Current assets Inventory MO 300 Receivables 900 Bank 100 1,300 3,300 Capital accounts Rod 1,300 Hook 800 Bait 400 2,500 *

Current liabilities Payables 600 Accruals 200 eA 800 3,300 The following additional information is available: