Question 1 Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively. The following was their balance sheet as at 31 December 2018: Non-Current Assets Premises Motor Vehicles Furniture and Fittings Cost $ 42,000 14,000 6,000 62,000 Depreciation. S 32,000 10,000 2,000 44,000 NBV S 10,000 4,000 4.000 18,000 Current Assets Inventory Trade Receivables 24,000 6.800 30.800 48.800 Capital and Liabilities Capitals: Mary Jane Susan 7,000 7,000 4.000 18,000 Current A/cs Mary Jane Susan 6,800 5,000 3,400 15.200 33,200 6,000 Loan from Toby Current Liabilities: Trade Payables Bank overdraft 7,800 1,800 9.600 48,800 On 31 December 2018 the partners decide to terminate the business. The following took place: i. ii. iii. Mary took over one of the motor vehicles for $5,000 Stock was taken over by Susan for $12,000 Premises, inventory, the remaining motor vehicles, furniture and fittings were sold for $9000, $12000, $1000 and $1000 respectively Receivables realised $6,450 and Payables were paid in full Dissolution Expenses amounted to $100 Susan was declared insolvent and was unable to repay the amount owed to the partnership. The partnership was terminated on December 31, 2018 iv. V. vi