Hugo, Candice, and John are partners in an office cleaning service, trading as SaniHygiene, and they share profits and losses in the ratio 1:3:2 respectively. They have decided to liquidate the partnership and have agreed to accept the most favourable offers received for the assets of the partnership. They planned to liquidate the partnership simultaneously on 31 May 2023. Before the liquidation entries were made, an extract of the trial balance of the partnership was as follows:

On 31 May 2023 the following transactions regarding the liquidation took place:

1. Equipment was sold to Mr Abiza, an independent third party, for R145 000.
2. Land and buildings were sold for R105 000
3. All outstanding amounts relating to creditors was settled, a settlement discount of 5 cents on every Rand owed was received.
4. Inventory was sold for R55 000.
5. The liquidation cost relating to the above amounted to R12 000.
6. All debtors settled their balances in full.

Which one of the following alternatives represents the correct amount that must be recorded in the Liquidation account for the apportionment of profit for Hugo?

question 22

a.

R9 780

b.

R22 560

c.

R8 625

d.

R25 875

Question 23

Which one of the following alternatives represents the correct amount that must be recorded in the Liquidation account for the apportionment of profit for John?

a.

R16 550

b.

R15 850

c.

R19 680

d.

R17 250

Question 24

Which of the following alternative represents the amount allocated to the capital account of Hugo relating to the revaluation amount?

a.

R3 950

b.

R3 500

c.

R2 000

d.

R2 880

Question 25

Which of the following alternatives represents the correct recording of the current account amount in the capital accounts?

a.

John: Credit R62 000

b.

Hugo: Debit R55 000

c.

Candice: Debit R25 000

d.

None of the above

Question 26

Which of the following alternative represents the amount allocated to the capital account payable to John relating to the goodwill amount?

a.

R28 333

b.

R27 485

c.

R29 455

d.

R26 450