Ali, Ben and Cathy have been in partnership for many years sharing profits and losses based on the ratio 2:21. They provided the following information. Non-current assets Land and buildings Plant and machinery Motor vehicles Current assets Inventory Statement of Financial Position As At 30 September 2021 £ £ Trade receivables Bank Total assets Current liabilities Trade payables Non-current liabilities Loan from Ali Capital accounts Current accounts (1) (2) (3) (5) A Ben Cathy 66 Ali Ben Cathy 17,632 9,340 2,546 Land and buildings were sold for £217.000. Plant and machinery was sold for £25,000. 22,840 75,000 80,000 60,000 20,000 12,735 10,873 (2.628) £ 210,000 27,950 11,352 249,302 29,518 278,820 On 30 September 2021, they decided to dissolve the partnership. The terms of the dissolution were: (97,840) 180, 980 160,000 20,980 180,980 The inventory was sold for £18,478. Two customers who owed the partnership £500 and £450 were unable to settle their debts. The remaining credit customers paid in full after receiving a 2% discount. (6) All of the trade payables were paid after they allowed a 5% discount. The total costs of dissolution amounted to £2,250. Motor vehicles were disposed of as follows: one to Ali and one to Ben at an agreed value of £4,000 each, with the remaining motor vehicles being sold for £5,000.
Ali, Ben and Cathy have been in partnership for many years sharing profits and losses based on the ratio 2:21. They provided the following information. Non-current assets Land and buildings Plant and machinery Motor vehicles Current assets Inventory Statement of Financial Position As At 30 September 2021 £ £ Trade receivables Bank Total assets Current liabilities Trade payables Non-current liabilities Loan from Ali Capital accounts Current accounts (1) (2) (3) (5) A Ben Cathy 66 Ali Ben Cathy 17,632 9,340 2,546 Land and buildings were sold for £217.000. Plant and machinery was sold for £25,000. 22,840 75,000 80,000 60,000 20,000 12,735 10,873 (2.628) £ 210,000 27,950 11,352 249,302 29,518 278,820 On 30 September 2021, they decided to dissolve the partnership. The terms of the dissolution were: (97,840) 180, 980 160,000 20,980 180,980 The inventory was sold for £18,478. Two customers who owed the partnership £500 and £450 were unable to settle their debts. The remaining credit customers paid in full after receiving a 2% discount. (6) All of the trade payables were paid after they allowed a 5% discount. The total costs of dissolution amounted to £2,250. Motor vehicles were disposed of as follows: one to Ali and one to Ben at an agreed value of £4,000 each, with the remaining motor vehicles being sold for £5,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare the following accounts for the month of September 2021.
a.Dissolution (Realisation) account.
b.Partners’ Capital accounts, in columnar form.
c. The
Transcribed Image Text:Ali, Ben and Cathy have been in partnership for many years sharing profits and losses based on
the ratio 2:2:1. They provided the following information.
Statement of Financial Position As At 30 September 2021
Non-current assets
Land and buildings
Plant and machinery
Motor vehicles
210,000
27,950
11,352
240,302
Current assets
Inventory
Trade receivables
Bank
17,632
9,340
2,548
29,518
278,820
Total assets
Current liabilities
Trade payables
22,840
Non-current liabilities
Loan from Ali
75,000
(97,840)
180, 980
Capital accounts
Ali
80,000
60,000
20,000
Ben
Cathy
180,000
Current accounts
Ali
12,735
10,873
(2,628)
Ben
Cathy
20,980
180,980
On 30 September 2021, they decided to dissolve the partnership. The terms of the dissolution
were:
(1)
(2)
(3)
Land and buildings were sold for £217,000.
Plant and machinery was sold for £25,000.
Motor vehicles were disposed of as follows: one to Ali and one to Ben at an agreed value
of £4,000 each, with the remaining motor vehicles being sold for £5,000.
The inventory was sold for £18,478.
Two customers who owed the partnership £590 and £450 were unable to settle their
debts. The remaining credit customers paid in full after receiving a 2% discount.
All of the trade payables were paid after they allowed a 5% discount
The total costs of dissolution amounted to £2,250.
(4)
(5)
(8)
(7)
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