B. Will, West and Thomas were in partnership sharing profits and losses in the ratio 3:2:1. On 30 June 2021 they decided to dissolve the partnership. After realising all the assets, the balance sheet appeared as follows: Cash at bank Capitals: Will West Thomas 64 000 32 000 48 000 (16 000) 64 000 Thomas is not able to pay the amount of the balance due to the partnership by him. Required: Prepare the capital accounts of all the partners after the entries are completed to close the books.

B. Will, West and Thomas were in partnership sharing profits and losses in the ratio 3:2:1. On 30 June 2021 they decided to dissolve the partnership. After realising all the assets, the balance sheet appeared as follows: Cash at bank Capitals: Will West Thomas 64 000 32 000 48 000 (16 000) 64 000 Thomas is not able to pay the amount of the balance due to the partnership by him. Required: Prepare the capital accounts of all the partners after the entries are completed to close the books.

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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Question

B.
Will, West and Thomas were in partnership sharing profits and losses in the ratio 3:2:1.
On 30 June 2021 they decided to dissolve the partnership. After realising all the assets,
the balance sheet appeared as follows:
Cash at bank
Capitals:
Will
West
Thomas
$
64 000
32 000
48 000
(16 000)
64 000
Thomas is not able to pay the amount of the balance due to the partnership by him.
Required:
Prepare the capital accounts of all the partners after the entries are completed to close the books.

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