Jane and John are in partnership, sharing profits and losses in the ratio 5:3, respectively.
They decided to dissolve the partnership on 31 December 2014.
Additional information:
• At dissolution the premises were sold for $256,000, the machinery for $59,200, the fixtures and fittings for $38,400. The motor vehicles were taken over by the partners: Jane $9000 and John $11,000.
• The inventory was sold for $26,400.
• The trade receivables paid $39,800 and the trade payables are paid on $32,600.
• The cost of dissolution was $8000.
Required
Prepare the ledger accounts to record the dissolution.
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