Nyfe, Ork and Poon decide to dissolve their partnership on 1 December 2015 after being in business for many years. The balance sheet of the partnership as at 30 November 2015 was as follows:

Nyfe, Ork and Poon

Balance sheet as at 30 November 2015

Assets
Non-current assets	$	$
Furniture and fittings		50,000
Motor vehicles		35,000
		85,000
Current assets
Inventory	25,000
Receivables	42,000
Bank	6,000	73,000
Total assets		158,000
Capital and liabilities
Partners capital accounts
Nyfe	45,000
Ork	30,000
Poon	15,000
		90,000
Partners current accounts
Nyfe	9,750
Ork	7,450
Poon	6,300
		23,500
Loan		18,000
Current Liabilities
Payables		26,500
Total capital and liabilities		158,000

Additional Information

The partnership agreement states that Nife, Ork and Poon share profits and losses in the ratio 3:2:1

The furniture and fittings were sold for $48,800.

Only $39,900 of outstanding receivables were recovered.

The payables were settled for $25,440.

It was agreed between the partners that Poon could take a motor vehicle at a valuation of $9,000 in addition to his share of the profit. The motor vehicle had a net book value of $8,000. The other motor vehicles were sold for $29,500.

The inventory was sold for $27,750.

The loan was repaid in full on 1 December 2015.

There were no outstanding interest payments on the loan.

Expenses incurred in dissolving the partnership were $1,000.

Required:

Prepare the following accounts on dissolution:

(i) Partners accounts (4 marks)

(ii) Realisation account (10 marks)

(iii) Cash and bank account (6 marks)

(20 marks)