The Balance Sheet of Ryan and Peter Firm as at 30

question 73

Multiple Choice

The balance sheet of Ryan and Peter firm as at 30 June 2017 is given below. $\begin{array}{|l|l|l|r|}\hline{\text { Assets }} &&{\text { Liabilities }} & \\\hline \text { Cash } & \$ 11,000 & \text { Accounts payable } & \$ 15,000 \\\hline \text { Accounts receivable } & 12,000 & \text { Other liabilities } & 25,000 \\\hline \text { Furniture } & 28,000 &{\text { Partners' equity }} & \\\hline \text { Equipment } & 41,000 & \text { Ryan, capital } & 30,000 \\\hline \text { Other assets } &8,000& \text { Peter, capital } & 30,000 \\\hline \text { Total assets } & \$ 100,000 & \text { Total liabilities and partners' equity } & \$ 100,000 \\\hline\end{array}$ Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership with immediate effect.The furniture and the equipment were sold at a cumulative loss of $57,000.The accounts receivable were duly received in cash and the other assets were written off as worthless.The cash balance remaining to pay the liabilities is:

• A)$35,000.
• B)$92,000.
• C)$41,000.
• D)$11,000.

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