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Rhugani and Zimkhona are in par tnership, trading as Khabonina Welders and sharing profits/losses of the partnership equally. The partners decided to liquidate the partnership piecemeal as from 1 May 20.1. The partners fur ther agreed that interim repayment will be made to them as cash becomes available in such a way that, while maximum distribution was to be made to the par tners, under no circumstances would a partner be required to refund to the partnership any amount he had received The following information is extracted from the accoun ting records of the

Rhugani and Zimkhona are in par tnership, trading as Khabonina Welders and sharing profits/losses of the partnership equally. The partners decided to liquidate the partnership piecemeal as from 1 May 20.1. The partners fur ther agreed that interim repayment will be made to them as cash becomes available in such a way that, while maximum distribution was to be made to the par tners, under no circumstances would a partner be required to refund to the partnership any amount he had received The following information is extracted from the accoun ting records of the

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Rhugani and Zimkhona are in partnership, trading as Khabonina Welders and sharing profits/losses of the partnership equally. The partners decided to liquidate the partnership piecemeal as from 1 May 20.1. The partners fur ther agreed that interim repayment will be made to them as cash becomes available in such a way that, while maximum distribution was to be made to the partners, under no circumstances would a partner be required to refund to the partnership any amount he had received. The following information is extracted from the accounting records of the partnership on 30 April 20.1: R Capital: Rhugani Capital: Zimkhona Current account Rhugani (Dr). Current account: Zimkhona (Cr) Land and buildings at cost. Equipment at cost. Accumulated depreciation: Equipment Goodwill Inventory. Trade payables control Bank (Dr). 232 300 263 800 45 400 21 200 348 300 97 200 8 600 15 900 29 700 21 200 10 600 100% Additional information: 1. On 2 May 20.1 the partners took the following decision on inventory: 1.1 Donate inventory to the local charity at a cost price of... R19 200 1.2. The remaining inventory was sold on the same day for cash amount 2. On 8 May 20.1 the partners took the following decision in regard to equipment 2.1 Equipment was sold at a public auction for a cash profit of. 22. The auctioneers fee amounted to.... 3. The partners negotiated a settlement discount of 10% with their creditor. The creditor agreed on condition that the account is settled on or before 10 May 20.1. The due date for payment was met by the partnership. R9 700 R21 000 R5 300 4. On 12 May 20.1, the partners received and accepted an offer for the purchase of the land and buildings for.. R369 400 QUESTION 1 Which one of the following alternatives represen ts the correct balance in the capital account of Rhugani at the commencementof the liquida tion? O A. 186 450 B. 178 950 O C. 149 200 D. 162 700
Transcribed Image Text:Rhugani and Zimkhona are in partnership, trading as Khabonina Welders and sharing profits/losses of the partnership equally. The partners decided to liquidate the partnership piecemeal as from 1 May 20.1. The partners fur ther agreed that interim repayment will be made to them as cash becomes available in such a way that, while maximum distribution was to be made to the partners, under no circumstances would a partner be required to refund to the partnership any amount he had received. The following information is extracted from the accounting records of the partnership on 30 April 20.1: R Capital: Rhugani Capital: Zimkhona Current account Rhugani (Dr). Current account: Zimkhona (Cr) Land and buildings at cost. Equipment at cost. Accumulated depreciation: Equipment Goodwill Inventory. Trade payables control Bank (Dr). 232 300 263 800 45 400 21 200 348 300 97 200 8 600 15 900 29 700 21 200 10 600 100% Additional information: 1. On 2 May 20.1 the partners took the following decision on inventory: 1.1 Donate inventory to the local charity at a cost price of... R19 200 1.2. The remaining inventory was sold on the same day for cash amount 2. On 8 May 20.1 the partners took the following decision in regard to equipment 2.1 Equipment was sold at a public auction for a cash profit of. 22. The auctioneers fee amounted to.... 3. The partners negotiated a settlement discount of 10% with their creditor. The creditor agreed on condition that the account is settled on or before 10 May 20.1. The due date for payment was met by the partnership. R9 700 R21 000 R5 300 4. On 12 May 20.1, the partners received and accepted an offer for the purchase of the land and buildings for.. R369 400 QUESTION 1 Which one of the following alternatives represen ts the correct balance in the capital account of Rhugani at the commencementof the liquida tion? O A. 186 450 B. 178 950 O C. 149 200 D. 162 700
QUESTION 2 Which one of the following alternatives represen ts the correct balance in the capital account of Zimkhona at the commencement of the liquida tion? O A. 231 000 B. 251 800 O C. 288 750 O D. 277 050 Reset Selection uestion 3 of 7 QUESTION 3 With regard to inventory, which one of the following alternatives represents the correct amount that will be allocated to Zimkhona? O A. 8 350 O B. 10 450 O C. 10 000 O D. 9 100 Reset Selection uestion 4 of 7 QUESTION 4 Which one of the following alternatives represen ts the correct the net cash proceeds on sale of equipment? O A. 96 700 O B. 104 300 C. 90 500 O D. 107 900 Reset Selection uestion 5 of 7 QUESTION 5 Which one of the following alternatives represen ts the correct the correct amo thatmust be paid to Rhugani on 10 May 20.1?
Transcribed Image Text:QUESTION 2 Which one of the following alternatives represen ts the correct balance in the capital account of Zimkhona at the commencement of the liquida tion? O A. 231 000 B. 251 800 O C. 288 750 O D. 277 050 Reset Selection uestion 3 of 7 QUESTION 3 With regard to inventory, which one of the following alternatives represents the correct amount that will be allocated to Zimkhona? O A. 8 350 O B. 10 450 O C. 10 000 O D. 9 100 Reset Selection uestion 4 of 7 QUESTION 4 Which one of the following alternatives represen ts the correct the net cash proceeds on sale of equipment? O A. 96 700 O B. 104 300 C. 90 500 O D. 107 900 Reset Selection uestion 5 of 7 QUESTION 5 Which one of the following alternatives represen ts the correct the correct amo thatmust be paid to Rhugani on 10 May 20.1?
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