The Balance Sheet of Ryan and Peter Firm as on December

question 72

Multiple Choice

The balance sheet of Ryan and Peter firm as on December 31, 2014, is given below. 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 $55,000. 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)$15,000.
• B)$92,000.
• C)$37,000.
• D)$40,000.