The Balance Sheet of Ryan and Peter Firm as on December

question 87

Multiple Choice

The balance sheet of Ryan and Peter firm as on December 31, 2017, is given below. Ryan and Peter share profits in the ratio 3:2. They have decided to liquidate the partnership with immediate effect. After completing all the liquidation procedures (assuming all assets and liabilities were liquidated at book value) , the business is left with $35,000 cash. As a result, Ryan will receive ________.

• A) $16,250
• B) $21,000
• C) $14,000
• D) $26,000

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Definitions:

Programmatic Reporting

A method of reporting that involves the use of automated software to generate data reports, often used in digital advertising and marketing.

Donations

Voluntary transfers of assets, including cash, goods, or services to another party without directly receiving something of equal value.

Endowment Contribution

A donation made to an organization with the stipulation that the funds are to be invested and the principal remained intact.

Restricted Fund Method

An accounting principle that mandates funds designated for a specific purpose by a donor must be tracked and reported separately from general funds.