Ona and Mazrita are in partnership, sharing profits in the ratio 2:1, respectively. They decide to dissolve the partnership on 31 March 2015 due to repeated disagreements about the running of the partnership.

The cost of dissolution was $3000.

a. Prepare the realisation account to show the profit or loss on dissolution. Do not record the discounts received or allowed as separate items.

b. Prepare the realisation anent int to chow the profit or loss on dissolution. Record the discounts allowed and the discounts received as separate items.

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Book value at On dissolution 31 March 2015 Inventory $12 000 $9 200 Machinery $16 200 $15 400 Trade receivables $7 400 $6 800 Trade payables $12 000 $11 400 $9 200 taken over by Onai $12 400 taken over by Mazrita Vehicles (2) $24 000