John, Elvis and Tracy have been in partnership for several years, sharing profits and losses in the ratio of 5:4:1 respectively. The last statement of financial position of the partnership prepared on 30^th April 2019 is as follows:

John, Elvis & Tracy Partnership

Statement of Financial Position as at 30^th April 2019

	$	$
Non-current assets at cost	40,000
Less accumulated depreciation	(15,000)	25,000
Stock		10,000
Accounts receivable		25,000
Total assets		60,000
Capital Account:
John	10,000
Elvis	8,000
Tracy	7,000	25,000
Current Account:
John	5,000
Elvis	3,000
Tracy	(3,200)	4,800
Current Liabilities
Bank Overdraft		10,200
Accounts Payable		20,000
Total equity and liabilities		60,000

On 30^th September the partners agreed to dissolve the partnership. The following are additional information on the dissolution:

• The stock was sold for a cash consideration of $5,000.
• Non-current assets were sold for $8,000 except for a vehicle with a book value of $5,000 was taken over by John at an agreed valuation of $4,000.
• Bad debts of $15,000 were fully written off and the remaining debtors settled amounts due in full.
• The cost of dissolution was $2,000.
• Discounts of $1000 were received from creditors and the balance of amounts owing was settled in full.

John was declared a bankrupt and was not able to pay amounts he owed and meet his joint obligation to the partnership.

REQUIRED:

1. Prepare the realisation account.
2. Prepare the bank general ledger.