Jamuson, Jackey and Metu are Architects and partners in an Architecture firm practicing as Westside Designs. They
Question:
Jamuson, Jackey and Metu are Architects and partners in an Architecture firm practicing as Westside Designs. They share profit and losses in the ratio 2:3:5. Due to the current national economic downfall and its subsequent devastating effects, they decided to migrate to New York to seek better employment opportunities. On 30 June 2021, the partners decided to dissolve the partnership concurrently. The following statement of financial position as at 30 June 2021 is presented to you:
ASSETS: N$
Non-currents assets: 1 350 000
Furniture 550 000
Motor Vehicles 250 000
Equipment 550 000
Current assets
Bank 225 000
Total assets 1 575 000
EQUITY AND LIABILITIES
Capital: 900 000
Jamuson 212 500
Jackey 300 000
Metu 387 500
Liabilities
Loan: Steward 450 000
Creditors 225 000
Total Equity and liabilities 1 575 000
Assets are realized as follows:
1. Furniture: A loss to the amount of N$ 100 000 was realized
2. Motor vehicles: A loss of N$ 75 000 was realized
3. Equipment: N$400 000 was received for equipment sold at an auction
4. All liabilities were settled in full
REQUIRED:
In view of the decision above, prepare the following ledger accounts in order to carry out the liquidation of the partnership:
1. Bank account
2. Capital accounts in columnar format
Expert Answer:
