Daisy, Freddie and Harry, who shared profits equally, had been in partnership for some years. Harry decided to retire.
Harry’s capital and current accounts had credit balances of $\$ 40000$ and $\$ 8000$ respectively.
The total assets of the partnership had a book value of $\$ 98000$ but a realisable value of $\$ 116000$. There was no adjustment for goodwill.
Which amount did Harry receive from the partnership on his retirement?
1 )
$\$ 38000$
2 )
$\$ 42000$
3 )
$\$ 48000$
$\$ 54000$
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