Adams and David were in partnership sharing profits and losses in the ratio 5:3: . The balance
Question:
Adams and David were in partnership sharing profits and losses in the ratio 5:3: . The balance sheet for the partnership at 31 March 2015 was as follows:
Fixed Assets/non current Assets (net) $ $
Premises 90 000
Motor vehicles 30 000
Goodwill 10 000
130 000
Current Assets
Inventory/stocks 15 000
Receivables/Debtors 28 000
Bank 24 000
67 000
Current Liabilities
Accounts payable 25 000
42 000
172 000
Capital accounts Adams 100 000
David 72 000
172 000
The premises were sold for $96 000 and David took over the car at an agreed valuation of $ 16 000. The stocks were sold for $12 000, the debtors realized $27 000, and the creditors were paid in full. Expenses of realization amounted to $ 1200.
Required:
Prepare the realization account, the bank account and the partners ‘capital accounts to record the above information.
Expert Answer:
Solution Disolution of Partnership Realisation Account Particulars To Premises To Motor ... View the full answer
