Kris Janner was in partnership with Kylie and Kim trading as KKK Skin, the partnership produces and sells skin products. The partners shared profits/losses in the ratio of 5:3:2 respectively. Due to the dispute on matters affecting the day-to-day operations of the business the partners have consequently agreed to dissolve the partnership piecemeal as from 1 July 2021.

The following is the trial balance of KKK Skin on 30 June 2021:

Trial balance of KKK Skin as at 30 June 2021 R

Property, plant and equipment 242400

Fixed deposit: Kandal Bank 100000

Loan from Kylie 14400

Long-term loan 96000

Trade debtors 126000

Bank (Dr) 18000

Capital: Kris 156000

Capital: Kylie 120000

Capital: Kim 96000

Goodwill 24000

Additional Information:

1. The surrender value of the insurance policy taken out on the lives of the partners is currently R50 000 and is to be paid to the partnership on the 07 July 2021.

2. An agreement was reached with all the debtors, that if outstanding balances are settled before 25 July 2021, a discount of 10% will be granted. On 07 July 2021, 90% of debtors had settled their accounts.

3. The partners loan account is to be transferred to his capital account.

4. The partners agreed to distribute the cash received from the sale of assets immediately, in such a way, that while maximum distribution was to be made to the partners, a partner would under no circumstances be required to refund to the partnership any amount he had received.

5. The assets were sold for cash as follows:

Carrying Value Proceeds

07 July 2021 Fixed deposit R110 0000 R110 000

12 July 2021 Vehicles R100 000 R106 000

Using the columnar formal according to the loss-absorption capacity method record the liquidation of KKK Skin from the 01 July to 07 July 2021 and answer the following.

Which of the following alternatives represents the correct balance in the capital account of Kris at the commencement of the liquidation

A.R 91 200,00

B.R 156 000,00

C.R 144 000,00

D.R 112 800,00

Question 26

Question text

Which one of the following alternatives represents the correct amount that must be allocated to Kylie relating to the life insurance?

A.R 15 000,00

B.R 25 000,00

C.R 50 000,00

D.R 10 000,00

Question 27

Question text

Which one of the following alternatives represents the correct the correct amount that must be allocated to Kylie relating to the amounts received from debtors?

A.R 22 680, 00

B.R 20 412, 00

C.R 11 340, 00

D.R 2 268,00

Question 28

Question text

Which one of the following alternatives represents the correct closing balance in the bank account of KKK Skin on 07 July 2021?

A.R 184 060,00

B.R 224 000,00

C.R 195 000, 00

D.R 208 000,00

Question 29

Question text

Which one of the following alternatives represents the correct closing balance for the Capital account for Kris on the 07 July 2021?

A.R 169 000,00

B.R 174 670,00

C.R 150 000,00

D.R 156 000,00

Question 30

Question text

Which one of the following alternatives represents the correct closing balance in the Assets account of KKK Skin on 07 July 2021?

A.R 245 000, 00

B.R 468 400,00

C.R R256 000,00

D.R 134 060,00