Dick and Francis, who share profits and losses equally, decide to dissolve their partnership as at 30 June 2017. Their statement of financial position on that date was as follows:

The accounts receivable realised £16,400, the buildings £132,000 and the tools and fixtures £3,600.

The expenses of dissolution were £800 and discounts totaling £600 were received from creditors.

Required:
Prepare the accounts necessary to show the results of the realization and of the disposal of the cash.

Transcribed Image Text:

w Buildings Tools and fixtures f 160,000 5,800 165,800 Accounts receivable 16,800 Cash 1,200 18,000 Sundry accounts payable 183,800 8,200 Capital account: Dick 175,600 Francis 105,360 70,240 175,600