Question 1
The following information appeared in the books of Scoby Dog Traders, with partners Scoby and Dog.
Question 2
Suga, Tay and Coffy are in a partnership trading as Refresh Traders. Suga, Tay and Coffy share profits/losses in the ratio of 2:2:1 respectively.
Coffy wants to retire from the partnership on 30 November 2023. Suga and Tay decided to admit Coco to the partnership on 1 August 2023 to give him time to become acquainted with the operations before Coffy retires. Coco will acquire a one fifth (1/5th) share of the business until Coffy retires. Suga, Tay and Coffy will relinquish the one fifth (1/5th) share to Coco in the ratio of 2:1:1 respectively. The new partnership will trade as Fresher Trading.
Coco will pay R125 000 in cash and contribute a vehicle to the value or R175 000 for his one fifth (1/5th) interest in the fair value of the assets and liabilities of the partnership. The following balances appeared in the books of Refresh Traders on 31 July 2023, immediately prior to the valuation adjustments in preparation for the change in ownership:
Question 3
Sticky and Toffy are in a partnership trading as Sticky-Toffy Caterers. Sticky and Toffy share profits and losses in the ratio of 2:3 respectively. Because the partners have decided that running the business was no longer profitable for the amount of effort that went into it, they have decided to liquidate the business simultaneously and go their separate ways.