Maisarah

Dissolution of partnership?

Nov 23rd 2011, 2:54 am
Posted by komai
1172 Views

Dissolution of partnership

Question:

Candy and Mandy is a partner in a partnership that shares the profit or loss equally. On June 30, 1993, they agreed to dissolve their partnership. Here is their Balance Sheet on that date;


Balance Sheet at June 30, 1993
-------------------------------------------------------------------------------------------------------

Assets                                                   $
  • Vehicles                                    7,700
  • Shop tools                                 3,520
  • Stock                                        3,785 
  • Debtors                                     4,288
  • Cash in bank                             1,352

                                                        =20,645
-------------------------------------------------------------------------------------------------------- 

Owner's equity                                     $
  • Candy's capital                          8,250
  • Mandy's capital                         7,250
  • Creditors                                   5,145

                                                        =20,645

Vehicles, shop tools, and the stock has been sold at the price of $ 15,420. A total of $ 4,200 was received from the debtor. All creditors have been paid in full and realization expenses of $ 195 has also been described.

All the money has been banked and payments made ​​by check.


Set up:

(a) The entry to record the dissolution of the Journal;

(b) Realization Account;

(c) Bank Accounts; and

(d) Candy and Mandy's Capital Accounts.



I just copied this question from my textbook.
I'm too lazy to put the table, so the balance sheet would looks weird.

Tags:
accountancy(1), my homework(1)

Bookmark & Share:

Please Like Us
Please Like Us