Problem - Jacky, Jillian and Jeff were in partnership and shared profits and losses in the ratio 3:4:2. The partnership is undergoing dissolution and assets have been liquidated piecemeal. You have been approached by partners to oversee the accounting process of liquidating the partnership and the following information has been made available to you.
1. All liabilities have already been paid.
2. The partners have decided to apply the loss absorption capacity method in accounting for the liquidation.
3. Unsold assets amount to R 7 200.
4. Inventory in transit amounts to R 6 400. The supplier has confirmed that the inventory will be delivered to the partnership's premises in 2 days.
5. The balances on the capital accounts are as follows:
- Jacky: R 8 000 credit
- Jillian: R 4 200 credit
- Jeff: R 12 600 credit
What amount represents the interim payment that should be made to Jeff upon liquidation of the partnership?
1. R9 578
2. R8 840
3. R9 168
4. R10 262