QUESTION 3 (30 Marks) Xen, Yen and Zen are in partnership and share profits and losses in the ratio 3:4:5. On 1 March 20.9 they decided to dissolve the partnership. They resolved that assets should realized when reasonable offers are received. The partners decided that any available cash should be paid over to them monthly. On the dissolution date, the statement of financial position of the partnership is as follows: Partnership Xen, Yen and Zen Statement of financial position as at March 20.9 ASSETS Current assets 38,000 38,000 Total assets EQUITY AND LIABILITIES Equity Capital: Xen 10.000 6.000 Yen Zen 2,000 Total equity 18,000 Non-current liabilities Long term borrowings Xen 6,000 Zen 4,000 Total non-current liabilities 10,000 Current liabilities Trade and other payables 10,000 38,000 Total equity and liabilities Additional information: 1. There is no cash included in the current assets of N$38,000. 2. As cash becomes available, it should be applied in the following sequences: L Trade and other payables Borrowings from partners; and then iii. Repayment of capital. 3. During the first six months after the dissolution date, the sundry assets are sold as follows: 31. Mar N$5,000 30. April N$10,000 31. May N$5,000 30. June N$1,000 31. Jul N$4,400 31. Aug N$ 600 NS 26.000 REQUIRED: 1) Determine the amounts of the partner's equity which exceed the profit sharing ratio (10 marks) 2) Classify the partners' capital repayment (5 marks) 3) Prepare a memorandum which indicates how cash received monthly will be distributed so that no partner is expected to make a later repayment. (10 marks) 4) Prepare the capital accounts of the partners