Obama and Hilary are in partnership, sharing profits and losses in the ratio 3:2. At 1 May 2008 they agree to sell their business to Save the Planet Ltd. The partnership balance sheet was as follows:

Save the Planet Ltd was a new company formed to purchase the above partnership business. Its authorised share capital is £1,000,000, made up of 300,000 7 percent preference shares of £1 each, and 700,000 ordinary shares of £1 each.
* The purchase price was to be £190,000, and the company proposed to settle this amount by the issue at par of 160,000 £1 Ordinary Shares, issued as fully paid, to the partners, the balance of the purchase price to be settled in cash on 20 May 2008.
The ordinary share distribution was made in the capital ratio of the partners at 30 April 2008.
The company agreed to take over a// the assets except the bank account, and also agreed to take over the responsibility for payment of the creditors. The company valued the acquired assets as follows:

The company also agreed to pay £18,000, included in the purchase price, for the total trade debtors taken over.

Required In the books of the partnership, show the entries necessary, in the following accounts, to close the business:
1 realisation account;
2 bank account;
3 partners’ capital accounts;
4 the opening balance sheet of the new company as at 1 May 2008.

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Fixed assets Freehold premises Plant and machinery Fixtures and fittings Balance sheet as at 30 April 2008 4 65,000 49,000 9,200 123,200 Current assets Stock 17,000 Sundry debtors 21,700 Balance at bank 12,300 51,000 Current liabilities Sundry creditors 13,200 13,200 Net assets 161,000 Capital accounts Obama 96,390 Hilary 56,610 153,000 Current accounts Obama 3,400 Hilary 4,600 8,000 161,000