QUESTION 5 Joseph and Jane are in partnership and they share profits and losses in the ratio of 3:2, respectively. They decided to admit Anton as a partner and a fifth interest in the partnership was sold to him. Joseph and Jane relinquished Antons interest to him in the proportion of 2:1, respectively. Which one of the following alternatives indicates the correct new profit-sharing ratio? 1. Joseph, Jane and Antons new profit-sharing ratio is 3:2:1, respectively 2. Joseph, Jane and Antons new profit-sharing ratio is 7:5:3, respectively 3. Joseph, Jane and Antons new profit-sharing ratio is 12:8:5, respectively 4. Joseph, Jane and Antons new profit-sharing ratio is 1:1:1, respectively

Given information for questions 6 and 7: Antoinette, Belinda and Cynthia were in a partnership which traded as Beta Traders, and they shared in the profits/losses of the partnership in the ratio of 5:3:2 respectively. They decided to liquidate the partnership on 1 May 2019 by means of a simultaneous liquidation. On 30 April 2019 the following trial balance was prepared:

	Debit R	Credit R
Capital: Antoinette..............................................................................		500 000
Capital: Belinda ..................................................................................		300 000
Capital: Cynthia..................................................................................		100 000
Current account: Antoinette................................................................	30 400
Current account: Belinda....................................................................		19 200
Current account: Cynthia ...................................................................	9 600
Revaluation surplus............................................................................		175 050
Long-term loan ...................................................................................		90 000
Trade payables control.......................................................................		57 300
Land and buildings at fair value..........................................................	850 000
Equipment at cost...............................................................................	300 000
Accumulated depreciation: Equipment...............................................		108 000
Bank ..................................................................................................	159 550
	1 349 550	1 349 550

On 1 May 2019 the following liquidation transactions took place: Land and buildings were sold for cash, R755 000. Equipment with a carrying amount of R50 000 was taken over but not paid for immediately by Belinda at an agreed amount of R58 000. The remaining equipment was sold for R265 000 in cash. R51 540 was paid to the creditors in full settlement of their accounts. The long term loan was settled at 5% discount.

QUESTION 6 Which alternative shows the correct profit/loss made on the liquidation of Beta Traders? 1. R46 760 profit 2. R41 760 profit 3. R46 760 loss 4. R41 760 loss

QUESTION 7 Assuming that the profit from liquidation amounted to R50 000 only for this question. Which alternative shows the correct balances on the capital accounts of Antoinette, Belinda and Cynthia immediately after to the profit/loss made on the liquidation of Beta Training was allocated to their capital accounts? 1. Antoinette: R469 600(cr); Belinda: R274 200(cr); Cynthia: R90 400(cr) 2. Antoinette: R494 600(cr); Belinda: R324 200(cr); Cynthia: R100 600(cr) 3. Antoinette: R582 125(cr); Belinda: R328 715(cr); Cynthia: R135 410(cr) 4. Antoinette: R557 125(cr); Belinda: R371 715(cr); Cynthia: R125 410(cr)