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Below is the balance sheet of X & Y who share profits and losses in the ratio of 3:2. Assets Buildings $30,000 Cash $26,000 $56,000
Below is the balance sheet of X & Y who share profits and losses in the ratio of 3:2.
Assets
Buildings $30,000
Cash $26,000
$56,000
Liabilities
Capital:
X $30,000
Y $20,000
$50,000
Creditors $6,000
$56,000
i) Calculate the working capital of the business.
ii) It is decided to dissolve the partnership. The creditors are paid $5 400 in settlement ($600 having been allowed as discount) and the buildings are sold for
$20 000 in cash. How much would Y be paid upon the dissolution of the partnership?
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