Alpha, Beta and Gamma were in partnership for many years sharing profits and losses in the ratio 5:3:2, respectively, and making up their accounts to 31 December each year. Alpha died on 31 December 2012 and the partnership was dissolved as from that date. The Statement of financial position as at that date is shown on the left. Dissolution progressed as follows:

(i) Land and buildings were sold for £380,000 and machinery for £88,000. Beta and Gamma took over the cars they were using valued at £9,000 and £14,000 respectively, and the remaining cars were sold for £38,000.

(ii) Inventory was taken over by Gamma at an agreed value of £120,000. £68,400 was collected from trade receivables and the remainder taken over by Gamma at an agreed value of £20,000.

(iii) Payables were all settled for £115,000.

(iv) Delta’s loan was settled on 31 March 2013 along with interest until that date.

(v) Expenses of dissolution were met at £2,400.

Required: Set out the

(a) Realisation account,

(b) Capital accounts and

(c) Cash Book recording the closure of the partnership by 31 March 2013.

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Statement of financial position as at 31 December 2012 Accumulated depreciation Non-current assets: Land and buildings Plant and machinery Motor vehicles Current assets: Inventory Trade receivables Cash and bank Capital - Alpha Beta Cost 350,000 220,000 98,500 Gamma Loan from Delta at 10% p.a. Trade payables £ (50,000) 300,000 (104,100) 115,900 (39,900) 58,600 110,600 89,400 12,600 212,600 687,100 £ 233,600 188,900 106,200 528,700 40,000 118,400 687,100