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, $468,000. 2020/2021- Semester 1 Financial Accounting II Prepare the following to record the dissolution of the partnership: a. The realization account b. The bank account c. The partners' capital accounts.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:ll Digicel ?
3:04 AM
O 100% 2
FINANCIAL ACCOUNTING 2 (3)....
SECTION B
Instructions: Read the cases below and critically respond to any TWO (2) in the box provided.
CASE STUDY ANALYSIS 1
Alpha, Beta and Gamma were in partnership, sharing profits in the ratio of their fixed capitals.
The Statement of Financial Position for the partnership as of June, 2020 is as follows:
2$
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
Total assets
1,845.000
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
Total capital and liabilities
300,000
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.
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