ASSIGNMENT 

Jay, Kay and Ray share profits and losses in the ratio 2:2:1 respectively. On 31 March 2021, their Statement of Financial Position was as follows:

	Statement of Financial Position at 31 March 2021
				RM	RM		RM
Non Current Assets
Goodwill							50,000
Premise							130,000
Equipment							36,000
							216,000
Current Assets
Inventory				28,600
Debtors				24,400	53,000
Current Liabilities
Creditors				50,600
Short term loan				45,600	96,200
Net current liabilities							(43,200)
							172,800
Capital accounts
Jay					80,000
Kay					50,000
Ray					50,000		180,000
Current accounts
Jay					28,000
Kay					(29,600)
Ray					(5,600)		(7,200)
							172,800

The partnership ceased and dissolved the business on 1 April 2021. Additional information available on 1 April 2021:

1. Legal fees relating to the dissolution was RM16,000.
2. The premises were sold for RM144,000.
3. The equipment was sold for RM19,000.
4. Inventory was realised for RM24,200.
5. Creditors were paid in full.
6. RM20,400 was received from debtors.
7. Kay had no personal assets to contribute to the dissolution.

You are required to prepare the following for Jay, Kay and Ray partnership as at 1 April:

1. Realisation account.
2. Current Accounts in columnar format.
3. Capital Accounts in columnar format.
4. Bank Account.

Answer rating: 100% (QA)

Realisation Account Realisation Account for Jay Kay and Ray Partnership as at 1 April 2021 RM RM Rea... View the full answer