Moore and Stephens, who share profits and losses equally, decide to dissolve their partnership as at 31 March 19X1. Their balance sheet on that date was as follows:

The debtors realised £2,700, the buildings £400 and the tools and fixtures £950. The expenses of dissolution were £100 and discounts totalling £200 were received from creditors.
Prepare the accounts necessary to show the results of the realisation and of the disposal of the ‘cash.

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Capital account: Moore 2,000 Buildings 800 Stephens 1,500 Tools and fixtures 850 Debtors 2,800 3,500 Cash 1,800 Sundry creditors 2,750 6,250 6,250