Question

c) Ni Nene and Nana were in partnership sharing profit in the ratio 3 2 1 respectively A summary of the statement of financial position of the partnership as at 30 September, 2018 is as follows: GH GHE Capital Account Non-Current Assets NI 15,000 Plant & Machinery 10.000 Nene 9.000 Motor Vehicles 3.600 Nana 6,000 Furniture 7.400 Current Account Current Assets N 7.200 Inventory Nene 5,400 Trades Receivable 13.500 Nana 3.900 Bank 14.000 Petty Cash 4.300 10.200 Loan Account Nene Trade payables 6,000 10.500 63.000 Due to a disagreement between Ni and Nene, the partners decided to dissolve the partnership. The following decisions were taken in relation to the dissolution The cash balance should be paid into the bank (a) The trade receivables realized GH¢12.600. (1) The trade payables were settled for GH¢9,900, the difference was granted as cash discount (1) Nii was to take over the motor vehicle at GH 3,780. (The inventory was sold for GH¢12.200 (1) The plant and machinery were disposed of at GH€20,000 (vi) The furniture was sold for GH12.900 (vili) Nene's loan was transferred to his capital account () Partners' current account balances were transferred to capital accounts You are required to prepare (a) The Realization Account (15 marks) (b) The Bank Account (10 marks) (c) The Partners Capital Accounts in a columnar form showing the final settlement among the partners

Answer 1

solution a: Realization Account: Particidays Amount Particulars Amount To plant and Machinery 10,000 By Trade Payables. 10,500 To Motor Vehicle 3,600 By Bank Ali - Trade receivable TO Furniture 12,600 7,400 To Inventory 10,200 - Inventory 12,200 – Plant and machinery 20,000 - Furniture 12,900 To Trade Receivables 13,500 To Bank A/C 57,700 - Trade payables 9900 Csettled) 3,780 9,900 By Nil's Capital Ale (motor vehicle taken over) To Partness capital Alc, 8,690 NIL (17,390 x 3/6) Nene (17,390 x 2/6) 5793 Nana (17,380x Y 2897 17,380 71,980 71980

Solution be Bank Ak. Particulars Amount Particilars dniams To Balance bid 14,000 9,900 To Petty cash Ale 4,300 (Refer WN #2) 27, 110 To Realization Al (Assets realized) 57700 By Realization Alc. Chiabilities paid) By Nil's capital Alco By Nene's capital Alc. By Nana's capital Alc. 26,193 12,797 76,000 76,000

Solution : C Pantnea's capital Account Nene Nana. Nil Particulars Nil Nene Nana Particulars : 15,000 9,000 6,000 To Realizations 3,780 Alc. (motor vehicle taken over) 7200 5,400 3,900 By Balance bid Partnes's current Alc. (Refes WN #1) By Loan Account (Nene) 6,000 8,690 5793 2,897 By Realization Alc (Realization profit). To Bank A/C (Bal-f) 27,10 26,193 12,791 (settlement). 30,840 26,193 12,197 30,89026,193 12,797

Coorking notes: (W) Partners Current Ak- Pesticulars Nil Nene Nara Postuwars Nit Nel Nang 7200 5,400 3900 10 Postres constal Alc 1200 5,400 3900 By Balance blad Ctransferring 17,250 Shoo 3,900 h,200 Shoo 3900 Petty cash AC- anud Posticulars Pasticulars 10 Balance bld 4,300 By Bank Al- 4,300 4.300 4,300 3. All amounts are in GH¢.

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