Alpha, Beta and Gamma were in partnership, sharing profits in the ratio of their fixed capitals. The Statement of Financial Position for the partnership as of June, 2020 is as follows: Non-Current Assets Equipment 925,000 Motor vehicles 162,500 Current assets 1,087,500 Inventory 465,000 Receivables 232,500 Bank 60,000 Total current assets 757,500 1,845,000 Total assets Financed by: Capital accounts Alpha 765,000 Beta 255,000 Gamma 255,000 1,275,000 Current accounts Alpha 60,000 Beta 40,000 Gamma 20,000 120,000 Long-term liability Loan 150,000 Current liability Payables 300,000 Total capital and liabilities 1,845,000 On July 1, 2020 the partnership was dissolved, and Gamma took over a vehicle valued at $45,000. Creditors were paid $288,000 in full settlement, while debtors were allowed a discount of $15,000. The loan was repaid in full. Legal and accounting costs associated with the dissolution amounted to $55,000. The other assets were sold, and realized: Equipment, $945,000; Motor vehicles, $108,000, Inventory, $468,000. 2020/2021- Semester 1 Financial Accounting II Prepare the following to record the dissolution of the partnership: a. The realization account b. The bank account c. The partners' capital accounts.

Alpha, Beta and Gamma were in partnership, sharing profits in the ratio of their fixed capitals. The Statement of Financial Position for the partnership as of June, 2020 is as follows: Non-Current Assets Equipment 925,000 Motor vehicles 162,500 Current assets 1,087,500 Inventory 465,000 Receivables 232,500 Bank 60,000 Total current assets 757,500 1,845,000 Total assets Financed by: Capital accounts Alpha 765,000 Beta 255,000 Gamma 255,000 1,275,000 Current accounts Alpha 60,000 Beta 40,000 Gamma 20,000 120,000 Long-term liability Loan 150,000 Current liability Payables 300,000 Total capital and liabilities 1,845,000 On July 1, 2020 the partnership was dissolved, and Gamma took over a vehicle valued at $45,000. Creditors were paid $288,000 in full settlement, while debtors were allowed a discount of $15,000. The loan was repaid in full. Legal and accounting costs associated with the dissolution amounted to $55,000. The other assets were sold, and realized: Equipment, $945,000; Motor vehicles, $108,000, Inventory, $468,000. 2020/2021- Semester 1 Financial Accounting II Prepare the following to record the dissolution of the partnership: a. The realization account b. The bank account c. The partners' capital accounts.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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