Exercise L.3-Question 2 Alex, Benjamin and Gabriel were in partnership for many years sharing profits and losses in the ratio 5:3:2 and making up their financial statements to 31 December each year. Alex died on 31 December 2017, and the partnership was dissolved from that date. The partnership statement of financial position at 31 December 2017 was as follows: Assets Cost Accumulated Net Bok Value depreciation Non-current assets RM RM RM Freehold land and buildings 350,000 50,000 300,000 Plant and machinery 220,000 104,100 115,900 Motor vehicles 98,500 39,900 58,600 668,500 194,000 474,500 Current assets Inventories Trade receivables Cash at bank Total assets 110,600 89,400 12,600 212,600 687,100 Equity and liabilities Capital accounts: -Alex -Benjamin -Gabriel 233,600 188,900 106,200 528,700 Non-current liabilities Loan Dolita (10% interest) 40,000 Current liability Trade payables 118,400 Total equity and liabilities 687,100 In the period January to March 2018 the following transactions took place and were dealt with in the partnership records: 1. Non-current assets: Freehold land and buildings-sold for: 380,000 Plant and machinery-sold for: 88,000 Motor vehicles: Benjamin and Gabriel took over the cars they 2/2 had been using at the following agreed values: -Benjamin 9,000 -Gabriel 14,000 The remaining vehicles were sold for: 38,000 2. Current assets Inventory taken over the by Gabriel at agreed value 120,000 Trade receivables: Cash received 68,400 Remainder taken over by Gabriel at agreed value 20,000 3. Current liabilities The trade and sundry payables were all settled for a total of 115,000 4. Non-current liabilities Dolita's loan was repaid on 31 March 2018 with interest accrued since 31 December 2017. 5. Expenses of dissolution RM2,400 were paid. 6. Capital accounts-the final amounts due to or from the estate of Alex, Benjamin and Gabriel were paid/received on 31 March 2018. Required Prepare the following accounts as at 31 March 2018 showing the dissolution of the partnership: (a) Realisation account (b) Partner's capital account (c) Cash book (cash account)