Page 14 of 25 FACULTY OF COMMERCE, MANAGEMENT AND LAW Question 3 (30 Marks) Pascoe, Canon and Fradley were in a partnership which traded as Trio Traders. They shared profits in the profits and losses equally. The partners decided to liquidate the partnership on 1 August 20.5 by means of simultaneous liquidation. The abridged statement statement of financial position as at 31 July 20.5, the financial year- end of Trio Traders, was as follows: ACULTY OF COMMERCE, MANAGEMENT AND LAW TRIO TRADERS STATEMENT OF FINANCIAL POSITION AS AT 31 JULY 20.5 ASSETS NON CURRENT ASSETS Property, plant and equipment goodwill N$ 117 000 90 000 27 000 CURRENT ASSETS 108 000 Inventories 60 000 trade receivables (debtors control) 40 000 Cash and cash equivalents (bank) 8 000 TOTAL ASSETS 225 000 EQUITY AND LIABILITIES TOTAL EQUITY capital Current accounts Other components of equity (asset replacement reserve) TOTAL LIABILITIES NON CURRENT LIABILITIES 155 000 132 500 7500 15 000 70 000 39 000 Long term borrowings (long term loan) 39 000 CURRENT LIABILITIES 31 000 Trade and other payables (creditors control) 31 000 TOTAL EQUITY AND LIABILITIES 225 000 FACULTY OF COMMERCE, MANAGEMENT AND LAW The capital and current account balances of each partner at 31 July 20.5: Pascoe N$ Cannon N$ Fradley N$ Capital account 65 000 45 000 22 500 Current account 12 000 8500 (13000) total 77 000 53 000 9500 Extract the note regarding property, plant and equipment for the year ended 31 July 20.5 Furniture and fittings Vehicle N$ Carrying amounts 40 000 at31 July 20.5 Total N$ N$ 50 000 90 000