Company purchasing a partnership business

Hello Sir,

Could you please help me solve this question’s part e? I can’t seem to understand what does it mean by surplus funds, I mean how to calculate it? everything else is clear except for part e!

Ayanda and Bola have been in partnership for many years, sharing profits in the ratio of 3 : 2
respectively. The annual profit has been $60 000 for some years.
On 1 June 2013 the partnership books of account showed the following balances.
$
Capital account Ayanda 40 000
Bola 25 000
Current account Ayanda 17 000 Cr
Bola 2 500 Dr
Bank 3 500 Dr
Trade payables 4 000
On that date the business was sold to Hetl Limited for a purchase consideration of $140 000.
This consisted of 50 000 $1 ordinary shares in Hetl Limited with a market value of $1.80, to be
shared equally, and the balance in cash. Hetl Limited took over all the assets and liabilities of the
business with the exception of the bank account and the trade payables.
REQUIRED
(a) Calculate the gain on realisation arising from the sale of the partnership. [5]
(b) Calculate the amount in cash due to each partner on the sale of the partnership. [5]
(c) Prepare the partnership bank account showing the entries to close the account. [5]
Additional information
Bola thinks it is unfair that Ayanda received more cash than she did.
REQUIRED
(d) Give four reasons why it is fair that Ayanda received more cash than Bola. [4]
Additional information
Hetl Limited pays a dividend of $0.25 per share each year. Surplus funds can be put on deposit in
a bank and earn 6% interest a year.
Ayanda has accepted a job with Hetl Limited at a salary of $20 000 a year.
REQUIRED
(e) Compare Ayanda’s current income with his earnings as a partner. [5]
(f) Suggest one non-financial reason why Ayanda might prefer to be an employee rather than a
partner. [1]