Ebb and Flow, who shared profits in the ratio 3:2, respectively, prepared their Statement of financial position on 31.3.2012 as stated in Activity 14.8. Flow agreed to take over the bank overdraft as well as a vehicle, which cost £30,000 and had been written down by this date to £26,000. Subject to this the business, other than Flow’s loan, was taken over by Wave Ltd for a consideration payable in cash of £982,000.

Required: 

Show the closure of partnership books.

Data from Activity 14.8:

Transcribed Image Text:

Statement of financial position as at 31.3.2012 Cost Depreciation £'000 Furniture Motor vehicle Inventory Trade receivables Allowance for doubtful debt Cash and bank 420 280 460 (24) 168 252 140 140 625 436 72 1,133 1,525