The Balance Sheet of Ryan and Peter Firm as on December

question 55

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 $5,000. The accounts receivable were duly received in cash and the other assets were written off as worthless. The accounts payable and other liabilities were paid off at book value. The firm's accountant distributed the remaining cash between Ryan and Peter equally. However, Peter initiated a lawsuit claiming that his share was greater than Ryan's. How much should Peter have received?

• A)$23,500
• B)$22,200
• C)$24,800
• D)$27,200

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Definitions:

Union Draft Law

Legislation enacted during the American Civil War that allowed for the conscription of individuals into the Union Army.

Military Service

The act of serving in the armed forces of a country, either as a compulsory duty or voluntarily, to defend and protect the nation's interests.

Irish Immigrants

People from Ireland who moved to another country, notably to the United States in the 19th and early 20th centuries, often to escape famine, economic hardship, or political unrest.

Industry Declined

A situation where a specific sector of the economy experiences a significant reduction in activity, production, or growth, often leading to economic downturns and job losses.