QUESTION 10 Andre, Floyd, and Wlad are in a partnership, selling sports equipment, and they share their profits/losses in the ratio of 2:2:1, respectively. At 31 December 2019, the financial year-end of the partnership, they decided to liquidate the partnership, piecemeal as from 1 January 2020. They agreed that they will start to repay the creditors after the first sale of the assets, and as soon as any cash becomes available for an interim distribution to the partners, it will be distributed according to the loss absorption capacity method. They also agreed that the capital deficit of an insolvent partner will be borne by the remaining solvent partners according to their profit-sharing ratio. At 31 December 2019, the balances of the accounts in the general ledger of the partnership were as follows:

	Debit R	Credit R
Capital: Andre.....................................................................................		45 000
Capital: Floyd .....................................................................................		45 000
Capital: Wlad......................................................................................		45 000
Current account: Andre ......................................................................	15 000
Current account: Floyd.......................................................................	10 000
Current account: Wlad........................................................................		8 000
Goodwill..............................................................................	24 000
Trade payables control.......................................................................		140 000
Furniture and equipment at carrying amount .....................................	340 000
Accumulated depreciation: Equipment .		108 000
Bank .................................................................................................	2 000
	391 000	391 000

1. The furniture and equipment were sold as follows:

	Carrying amount	Selling price	Transaction method
15-Jan-20	10 000	8000	Taken over by Wlad
22-Jan-20	120 000	150 000	Cash
31-Jan-20	102 000	85 000	Cash
	232 000	245 000

2. Five percent discount was received when the creditors were paid Indicate the alternative that correctly shows the credit balances of the capital accounts, immediately prior to the calculation of the distribution of the available cash in respect of the first interim repayment to the partners on 22 January 2020. 1. Andre, R8 400; Floyd, R13 400 and Wlad, R32 200 2. Andre, R20 400; Floyd, R25 400 and Wlad, R48 200 3. Andre, R34 400; Floyd, R39 400 and Wlad, R47 200 4. Andre, R35 200; Floyd, R40 200 and Wlad, R45 600