Brown, Blue, and Black are in partnership sharing profit and losses in the ratio 2:1:2. The balance sheet for the partnership as of April 15, 2019, was as follows: $ Non-current assets Land Buildings Equipment Current assets Inventory Accounts receivable Cash Total assets Capital account Brown Blue Black Non-current liabilities Mortgage on building Current liabilities Accounts payable Total liabilities 360,000 1,260,000 234,000 108,000 45,000 36,000 315,000 108,000 450,000 1,080,000 90,000 $ 1,854,000 189,000 2,043,000 873,000 1,080,000 90,000 2,043,000
Brown, Blue, and Black are in partnership sharing profit and losses in the ratio 2:1:2. The balance sheet for the partnership as of April 15, 2019, was as follows: $ Non-current assets Land Buildings Equipment Current assets Inventory Accounts receivable Cash Total assets Capital account Brown Blue Black Non-current liabilities Mortgage on building Current liabilities Accounts payable Total liabilities 360,000 1,260,000 234,000 108,000 45,000 36,000 315,000 108,000 450,000 1,080,000 90,000 $ 1,854,000 189,000 2,043,000 873,000 1,080,000 90,000 2,043,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Question 2
Brown, Blue, and Black are in partnership sharing profit and losses in the ratio 2:1:2. The
balance sheet for the partnership as of April 15, 2019, was as follows:
$
Non-current assets
Land
Buildings
Equipment
Current assets
Inventory
Accounts receivable
Cash
Total assets
Capital account
Brown
Blue
Black
Non-current liabilities
Mortgage on building
Current liabilities
Accounts payable
Total liabilities
360,000
1,260,000
234,000
108,000
45,000
36,000
315,000
108,000
450,000
1,080,000
90,000
$
1,854,000
Required:
Prepare the following ledger accounts for the dissolution of the partnership:
a) Realization account
b) Bank account
c) Partner's capital account
189,000
2,043,000
873,000
1,080,000
90,000
2,043,000
The partners agreed to dissolve the partnership on April 15, 2019 on the following
conditions:
Sold the inventory for $72,000, collected $48,000 on accounts receivable and wrote off the
remaining accounts, sold equipment for $192,000 and building and land for $1,200,000, the
buyer taking over the mortgage on the building.
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