Ali, Ben and Cathy have been in partnership for many years sharing profits and losses based on the ratio 2:2:1. They provided the following information. Statement of Financial Position As At 30 September 2021 Non-current assets Land and buildings Plant and machinery Motor vehicles 210,000 27,950 11,352 249,302 Current assets Inventory Trade receivables Bank 17,632 9,340 2,546 29,518 278,820 Total assets Current liabilities Trade payables 22,840 Non-current liabilities Loan from Ali 75,000 (97,840) 180, 980 Capital accounts Ali 80,000 60,000 20.000 Ben Cathy 180,000 Current accounts Ali 12,735 10,873 (2.628) Ben Cathy 20,980 180,980 On 30 September 2021, they decided to dissolve the partnership. The terms of the dissolution were: Land and buildings were sold for £217,000. Plant and machinery was sold for £25,000. Motor vehicles were disposed of as follows: one to Ali and one to Ben at an agreed value of £4,000 each, with the remaining motor vehicles being sold for £5,000. The inventory was sold for £18,478. Two customers who owed the partnership £590 and £450 were unable to settle their debts. The remaining credit customers paid in full after receiving a 2% discount. All of the trade payables were paid after they allowed a 5% discount. The total costs of dissolution amounted to £2,250. (1) (2) (3) (4) (5) (6) (7)
Ali, Ben and Cathy have been in partnership for many years sharing profits and losses based on the ratio 2:2:1. They provided the following information. Statement of Financial Position As At 30 September 2021 Non-current assets Land and buildings Plant and machinery Motor vehicles 210,000 27,950 11,352 249,302 Current assets Inventory Trade receivables Bank 17,632 9,340 2,546 29,518 278,820 Total assets Current liabilities Trade payables 22,840 Non-current liabilities Loan from Ali 75,000 (97,840) 180, 980 Capital accounts Ali 80,000 60,000 20.000 Ben Cathy 180,000 Current accounts Ali 12,735 10,873 (2.628) Ben Cathy 20,980 180,980 On 30 September 2021, they decided to dissolve the partnership. The terms of the dissolution were: Land and buildings were sold for £217,000. Plant and machinery was sold for £25,000. Motor vehicles were disposed of as follows: one to Ali and one to Ben at an agreed value of £4,000 each, with the remaining motor vehicles being sold for £5,000. The inventory was sold for £18,478. Two customers who owed the partnership £590 and £450 were unable to settle their debts. The remaining credit customers paid in full after receiving a 2% discount. All of the trade payables were paid after they allowed a 5% discount. The total costs of dissolution amounted to £2,250. (1) (2) (3) (4) (5) (6) (7)
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 41P
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Partners’ Capital accounts, in columnar form.
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