Assignments Question 3 Kung and Fu after working together as partners for five years during which they shared profit and losses equally decided to dissolve the business. The firms accountant presented the following Balance sheet as at 31 December, 2017

The following took place: 1. Sundry debtors realized Ghc54,000 2. Stock was sold for Ghc180,000 3. Plant and Machinery were sold for Ghc48,000 4. Furniture and Fittings were taken by Kung at Ghc 21,000 5. A discount of Ghc1,800 was received from sundry creditors were off 6. Realization expenses amounted to Gh4,260. (a) Prepared Realization Account (10marks) (b) Prepare Partners Capital Account. (5marks) (c) Cash Account (5marks)

NB current liabilities. creditors 72,000

Capital Account Kung Fu Loan (Kung) Ghc Ghc 180,000 120,000 20,000 300,000 Current Liabilities Creditors 52.000 372.000 Fixed Assets : Plant and Equipment Furniture and Fittings 51,000 21000 72000 Current Assets Stock Debtors Bank Cash 210,000 60,000 20,000 10,000 300,000 372,000