$3$

QUESTION THREE

Powed personally $N10,000,000$ and he had in addition to the interest in the firm, a house which cost $$0,000,000,$ furniture $N2,400,000,$ and life policies on which he had paid premiums amourting to N$1,200,000.$

Q owsd N$1,880,000$ privately. He had furniture costing N$1,200,000$ and a life policy on which $N3,659,000$ had been paid as premium. The bank held deeds of $P\text{'}$s property and his life policies. It beckinc necessary to call the payables together. The partnership assets were valued as follows:

A achinery N$13,080,000$;

Building NNG$,000,000$;

Receivible, good, NI$2,000,000,$ doubtful N $6,000,000($estimated to realise $60\%)$ and bad $,0,00,000$

laventories $N20,000,000.$

The frim had in it premises goods belonging to another firm and which were lying for a fairly long singe$.$ The book value of such goods was $N7,000,000$; the official receiver estimated those at N$.0($i$)$ ivo.

$P\text{'}$s firserty was considered to be worth $N6,000,000,$ his life policies, $N600,000$ and his furmmurt, $N1,800,000.$ Q$\text{'}$s life policies were worth $N1,800,000$ and his furniture, $N600,000$ You are required to prepare:

$($i$)$ the statements of affairs and

$($ii$)$ deficiency accounts.

$(10$ marks$)$

$(\frac{7^1}{2}$ marks$)$

$($Total $17\frac{1}{2}$ marks$)$