Jane and John are in partnership, sharing profits and losses in the ratio 5:3, respectively.

They decided to dissolve the partnership on 31 December 2014.

Additional information:

• At dissolution the premises were sold for $256,000, the machinery for $59,200, the fixtures and fittings for $38,400. The motor vehicles were taken over by the partners: Jane $9000 and John $11,000.

• The inventory was sold for $26,400.

• The trade receivables paid $39,800 and the trade payables are paid on $32,600.

• The cost of dissolution was $8000.

Required

Prepare the ledger accounts to record the dissolution.

Transcribed Image Text:

Jane and John Statement of financial position at 31 December 2014 Non-current assets at book value Premises 250 000 Machinery 64 200 Fixtures and fittings 43 800 Motor vehicles 22 000 380 000 Current assets inventory 29 600 Trade receivables (less provision for doubtful debts $1 400) 42 200 71 800 Total assets 451 800 Capital accounts Jane 225 000 John 135 000 360 000 Current accounts Jane 68 100 John (27 100) 41 000 Curent liabilities Trace payables 36 600 Cash and cash equivalents 14 200 50 800 Total capital and liabilities 451 800