Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively. The following was their balance sheet as at 31 December 2018: NBV %2$ 10,000 4,000 Cost Depreciation. Non-Current Assets Premises 32,000 42,000 14,000 6.000 62.000 Motor Vehicles 10,000 2.000 44.000 Furniture and Fittings 4.000 18,000 Current Assets 24,000 Inventory Trade Receivables 6,800 30.800 48.800 Capital and Liabilities Mary Jane Susan Capitals: 7,000 7,000 4,000 18,000 6,800 5,000 3.400 Current A/es Mary Jane Susan 15.200 33,200 6,000 Loan from Toby Current Liabilities: Trade Payables Bank overdraft 7,800 9.600 48.800 1800 On 31 December 2018 the partners decide to terminate the business. The following took place: i. Mary took over one of the motor vehicles for $5,000 ii. Stock was taken over by Susan for $12,000 Premises, inventory, the remaining motor vehicles, fumiture and fittings were sold for $9000, $12000, $1000 and S1000 respectively Receivables realised $6,450 and Payables were paid in full Dissolution Expenses amounted to $100 iii. iv. v. vi. Susan was declared insolvent and was unable to repay the amount owed to the partnership. The partnership was terminated on December 31, 2018 You are required to prepare the following accounts to record the termination of the partnership: Realisation Account A. i. ii. Bank Account iii
Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively. The following was their balance sheet as at 31 December 2018: NBV %2$ 10,000 4,000 Cost Depreciation. Non-Current Assets Premises 32,000 42,000 14,000 6.000 62.000 Motor Vehicles 10,000 2.000 44.000 Furniture and Fittings 4.000 18,000 Current Assets 24,000 Inventory Trade Receivables 6,800 30.800 48.800 Capital and Liabilities Mary Jane Susan Capitals: 7,000 7,000 4,000 18,000 6,800 5,000 3.400 Current A/es Mary Jane Susan 15.200 33,200 6,000 Loan from Toby Current Liabilities: Trade Payables Bank overdraft 7,800 9.600 48.800 1800 On 31 December 2018 the partners decide to terminate the business. The following took place: i. Mary took over one of the motor vehicles for $5,000 ii. Stock was taken over by Susan for $12,000 Premises, inventory, the remaining motor vehicles, fumiture and fittings were sold for $9000, $12000, $1000 and S1000 respectively Receivables realised $6,450 and Payables were paid in full Dissolution Expenses amounted to $100 iii. iv. v. vi. Susan was declared insolvent and was unable to repay the amount owed to the partnership. The partnership was terminated on December 31, 2018 You are required to prepare the following accounts to record the termination of the partnership: Realisation Account A. i. ii. Bank Account iii
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively.
The following was their balance sheet as at 31 December 2018:
NBV
24
10,000
4,000
4.000
Cost
Depreciation.
Non-Current Assets
Premises
42,000
14,000
6.000
32,000
10,000
2.000
44.000
Motor Vehicles
Furniture and Fittings
62.000
18,000
Current Assets
Inventory
24,000
Trade Receivables
6,800
30.800
48.800
Capital and Liabilities
Capitals:
7,000
7,000
Mary
Jane
Susan
4.000
18,000
Current A/es Mary
Jane
6,800
5,000
3.400
Susan
15.200
33,200
6,000
Loan from Toby
Current Liabilities:
Trade Payables
Bank overdraft
7,800
1.800
9,600
48.800
On 31 December 2018 the partners decide to terminate the business. The following took place:
i.
Mary took over one of the motor vehicles for $5,000
Stock was taken over by Susan for $12,000
Premises, inventory, the remaining motor vehicles, fumiture and fittings were sold for
$9000, $12000, $1000 and S1000 respectively
Receivables realised $6,450 and Payables were paid in full
Dissolution Expenses amounted to $100
Susan was declared insolvent and was unable to repay the amount owed to the
partnership. The partnership was terminated on December 31, 2018
ii.
iii.
iv.
v.
vi.
You are required to prepare the following accounts to record the termination of the
partnership:
i.
A.
Realisation Account
ii.
Bank Account
iii.
Partners' Capital Account
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