Chip, Dale and Duck are partners of a trading firm and share profits and losses in the ratio 3:2:1. The firm's balance sheet on 31 December 2006 was:

Dale retired from the Partnership on 1 January 2007 and agreed to leave half the final balance on his capital account as a short-term loan to the firm. The remainder was paid to him in cash immediately.
Chip and Duck had agreed to continue in partnership sharing profits and losses in the same proportions as before. Unrecorded goodwill on 1 January was valued at £18,000.
Required 1 Prepare the capital Accounts of Chip, Dale and Duck as at 1 January 2007.
2 Show Dale’s loan account as at 1 January 2007.

Transcribed Image Text:

Fixed assets Freehold premises Motor vehicles at cost less depreciation Current assets Stock Debtors Balance at bank Current liabilities Creditors Net assets " 25,000 19,000 44,000 12,000 15,000 11,000 38,000 8,000 8,000 74,000 Partners' capital accounts Chip 36,000 Dale 24,000 Duck 12,000 72,000 Partners' current accounts Chip 2,400 Dale Dr (1,600) Duck 1,200 2,000 74,000