The Balance Sheet of Ryan and Peter's Partnership as of December

question 154

Multiple Choice

The balance sheet of Ryan and Peter's partnership as of December 31,2018,is given below. Ryan and Peter share profits in the ratio 3:2.They have decided to liquidate the partnership.The furniture
And the equipment were sold at a cumulative loss of $4000.The accounts receivable were collected in full 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)$20,500
• B)$19,200
• C)$21,800
• D)$23,200

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Definitions:

Rhizoids

Thread-like structures that anchor nonvascular plants like mosses and liverworts to their substrates, but do not absorb nutrients like true roots.

Cotyledons

Embryonic leaf in seed-bearing plants, the first to appear from a germinating seed.

Ovule

In seed plants, a structure that contains the female gametophyte and has the potential to develop into a seed.

Seed

The reproductive unit of a flowering plant, capable of developing into another such plant.