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Roberto and Sangeeta have been in partnership for many years sharing profits and losses in the   ratio 3:2. They decide to dissolve the partnership on 31 August 2021.   Their summarized statement of financial position at that date was as follows:    The following information is also available:  Furniture and equipment were sold for $690,000. Roberto took over one of the vehicles at an                       agreed value of   $90,000; the other was sold for $120,000. The firm paid $148,000 in full settlement of accounts payable  Inventory realized $210,000.  Accounts receivable were settled after allowing a 10% discount Dissolution expenses amounted to $4,000  Required:  Prepare the following accounts:  a. Realization b. Bank c. Capital accounts d. State two reasons why a partnership might be disolved

Roberto and Sangeeta have been in partnership for many years sharing profits and losses in the   ratio 3:2. They decide to dissolve the partnership on 31 August 2021.   Their summarized statement of financial position at that date was as follows:    The following information is also available:  Furniture and equipment were sold for $690,000. Roberto took over one of the vehicles at an                       agreed value of   $90,000; the other was sold for $120,000. The firm paid $148,000 in full settlement of accounts payable  Inventory realized $210,000.  Accounts receivable were settled after allowing a 10% discount Dissolution expenses amounted to $4,000  Required:  Prepare the following accounts:  a. Realization b. Bank c. Capital accounts d. State two reasons why a partnership might be disolved

FINANCIAL ACCOUNTING
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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Roberto and Sangeeta have been in partnership for many years sharing profits and losses in the 

 ratio 3:2. They decide to dissolve the partnership on 31 August 2021. 

 Their summarized statement of financial position at that date was as follows: 

  The following information is also available: 

  1. Furniture and equipment were sold for $690,000. Roberto took over one of the vehicles at an                       agreed value of   $90,000; the other was sold for $120,000.
  2. The firm paid $148,000 in full settlement of accounts payable 
  3. Inventory realized $210,000. 
  4. Accounts receivable were settled after allowing a 10% discount
  5. Dissolution expenses amounted to $4,000 

Required: 

Prepare the following accounts: 

a. Realization

b. Bank

c. Capital accounts

d. State two reasons why a partnership might be disolved

Home Insert Cut Copy Format Painter board Page Layout References Calibri (Body) BIU-abe x, x² T A A Mailings - B 1 X Assets NEVIGUM U N E 1 Current: E Roberto Sangeeta ill X 11 1 Roberto Sangeetal NGUM E M Paragraph Current assets Inventory Accounts Receivable -=t M ## £! T 2- E Non-current assets Furniture and Equipment Motor vehicles Capital and Liabilities Capital: Current liabilities Accounts payable Bank overdraft Developer 1 PA [ 1 C $ 1 $ 225,000 75,000 550,000 300,000 AaBbCcDc AaBbCcD. AaBbC AaBbce A. T Normal 1 No Spaci... Heading 1 Heading 2 TH 150,000 25,000 1 $ 600,000 200,000 800,000 300,000 1,100,000 850,000 125,000 (50,000) 75,000 925,000 175,000 1,100,000 1
Transcribed Image Text:Home Insert Cut Copy Format Painter board Page Layout References Calibri (Body) BIU-abe x, x² T A A Mailings - B 1 X Assets NEVIGUM U N E 1 Current: E Roberto Sangeeta ill X 11 1 Roberto Sangeetal NGUM E M Paragraph Current assets Inventory Accounts Receivable -=t M ## £! T 2- E Non-current assets Furniture and Equipment Motor vehicles Capital and Liabilities Capital: Current liabilities Accounts payable Bank overdraft Developer 1 PA [ 1 C $ 1 $ 225,000 75,000 550,000 300,000 AaBbCcDc AaBbCcD. AaBbC AaBbce A. T Normal 1 No Spaci... Heading 1 Heading 2 TH 150,000 25,000 1 $ 600,000 200,000 800,000 300,000 1,100,000 850,000 125,000 (50,000) 75,000 925,000 175,000 1,100,000 1
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