This information appeared in the books of Mabel and Mary on 31 March 20x5. The partners share profits and losses in the ratio of 2 : 1.

On 31 March 20x5, the partners decided to dissolve the partnership and to sell its assets to Mark Ltd for R150 000.

1. All liabilities were settled by the partnership.

2. Payables were paid by cheque, R30 000.

3. Dissolution cost was paid by cheque, R100.

4. Mark Ltd paid the purchase price by issuing 12 000 fully paid shares of R10 each to the partners and the difference in cash.

5. The partners are to divide the shares in their profit-sharing ratios.

Cash must be paid in or withdrawn by the partners so that their capital accounts close.

You are required to:

Use these ledger accounts to show the dissolution of the partnership:

1. Bank account.

2. Profit and loss at dissolution.

3. Capital accounts of Mabel and Mary.

4. Mark Ltd’s account.

Transcribed Image Text:

ASSETS Goodwill Machinery Furniture Vehicles Inventories Accounts receivable 1 000 00 21 500 00 5 000 00 9 000 00 58 000 00 69 500 00 164 000 00 EQUITY & LIABILITIES Capital Mabel Mary Current accounts Mabel Current liabilities Bank overdraft Accounts payable 80 000 00 40 000 00 4 000 00 9 400 00 30 600 00 164 000 00