Poole and Burns, who share profits and losses equally, decide to dissolve their partnership as at 30 June 20X1. Their balance sheet on that date was as follows:

The debtors realised £8,200, the buildings £66,000 and the tools and fixtures £1,800. The expenses of dissolution were £400 and discounts totalling £300 were received from creditors.

Required:

Prepare the accounts necessary to show the results of the realisation and of the disposal of the cash.

Transcribed Image Text:

Buildings Tools and fixtures Debtors Cash Sundry creditors Capital account: Poole Burns £ 8,400 600 9,000 (4,100) £ 80,000 2,900 82,900 4,900 87,800 52,680 35,120 87,800