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GIVEN INFORMATION FOR QUESTION 10 Busi, Bulumko and Buhle were in partnership and shared profits and losses in the ratio 3:4:2. The partnership is undergoing
GIVEN INFORMATION FOR QUESTION 10 Busi, Bulumko and Buhle were in partnership and shared profits and losses in the ratio 3:4:2. The partnership is undergoing dissolution and assets have been liquidated piecemeal. You have been approached by partners to oversee the accounting process of liquidating the partnership and the following information has been made available to you. 1. All liabilities have already been paid. 2. The partners have decided to apply the loss absorption capacity method in accounting for the iquidation 3. Unsold assets amount to R 7 200 Inventory in transit amounts to R 6 400. The supplier has confirmed that the inventory will be delivered to the partnership's premises in 2 days. The bank balance amounts to R11 200. 5. 5. The balances on the capital accounts are as follows: Busi R 8 000 credit Bulumko: R 4 200 credit Buhle: R 12 600 credit QUESTION 10 Which of the following options represents the interim payment that should be made to Buhle upon liquidation of the partnership? 1. R9 578 2. R8 840 3. R9 168 4. R10 262
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