Explain the THREE (3) steps involved in partnership dissolution.

(6 marks)

(b) Describe the following:

1. Realisation Account;

(7 marks)

1. Capital Account; and

(6 marks)

1. Cash Account.

(6 marks)

(Total: 25 marks)

Ace, Lina and Fila have been in partnership for several years, sharing profits and losses in the ratio 3:1:1. They decide to dissolve their partnership. Their last balance sheet which was prepared on 31 December 2022 is as follows: Statement of Financial Position Ace, Lina and Fila as at 31 December 2022 The non-current assets realised $75,000. The expenses of dissolution were $250 and discounts totaling $200 were received from creditors