Dissolution of partnership?

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

Dissolution of partnership


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


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


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.

accountancy(1), my homework(1)

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