The Balance Sheet of Ryan and Peter Firm as at 30

question 20

Multiple Choice

The balance sheet of Ryan and Peter firm as at 30 June 2017 is given below. $\begin{array}{|r|r|l|l|}\hline{\text { Assets }} &&{\text { Liabilities }} & \\\hline \text { Cash } & \$ 15,000 & \text { Accounts payable } & \$ 14,000 \\\hline \text { Accounts receivable } & 12,000 & \text { Other liabilities } & 25,000 \\\hline \text { Furniture } & 25,000 &{\text { Partners' equity }} & \\\hline \text { Equipment } & 40,000 & \text { Ryan, capital } & 30,000 \\\hline \text { Other assets } & 7000 & \text { Peter, capital } & 30,000 \\\hline \text { Total assets } & \$ 99,000 & \text { Total liabilities and partner's' equity }& \$ 99,000\\\hline\end{array}$ Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership with immediate effect.The accounts payable were settled at $11,000 due to the poor financial condition of the partnership firm.As a result,Ryan's capital account will be credited by:

• A)$1800.
• B)$9000.
• C)$6600.
• D)$3000.

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