partners. They share profit and losses in the ratio of 2:1:2. Their balance sheet was as under: Assets Cash and Bank Accounts Receivable Merchandise Inventory Furniture and Fixture Equities 33,000 Accounts Payable 29,000 Notes Payable 26,000 A’s Capital 24,000 B’s Capital C’s Capital 112,000 4,000 8,000 40,000
Question # 02
A, B and C were partners. They share
Assets
Cash and Bank Accounts Receivable Merchandise Inventory
Furniture and Fixture
Equities
33,000 Accounts Payable 29,000 Notes Payable 26,000 A’s Capital
24,000 B’s Capital C’s Capital
112,000
4,000 8,000 40,000
20,000 40,000 112,000
The partner decided to dissolve the firm.
Required:
Given entries in general journal to record the dissolution of the firm considering the following transaction.
a) Cash Rs. 25,000 was collected from debtors in full settlement.
b) Cash Rs. 72,000 received from the sale of inventory and furniture and fixture.
c) Paid off the liabilities in full.
d) All the available balance of cash after considering the above transaction distributed among the
partners.
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