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Please type. Its due today midnight Question 2 (32 Marks) Matheus and Hamalwa were in a partnership and traded together for some time. On 01
Please type. Its due today midnight
Question 2 (32 Marks) Matheus and Hamalwa were in a partnership and traded together for some time. On 01 July 2020 Matheus decided to withdraw from the partnership to start his own practice. Their abridged statement of financial position as at 30 June 2020 was: ASSETS N$ EQUITY & LIABILITIES NS Property, Plant & Equipment (PPE) 76,250.00 Capital: Matheus 38,100.00 (10,000.00) Capital: Hamalwa 32,600.00 Accumulated depreciation:PPE Vehicles 10,875.00 32,500.00 Current account: Matheus (12,500,00) Current account: Hamalwa 13,625.00 Accumulated depreciation: Vehicle Trade receivable 13,800.00 Loan: Tyme Bank 15,500.00 (1,750.00) Trade payable 8,750.00 Allowance for bad debts Cash 21,150.00 119,450.00 119,450.00 Transactions for July 2020: 1. Trade receivable who owed N$ 10 025.00 settled their accounts in full. 2. The trades payable were settled in full. 3. A vehicle was sold for N$ 9 750.00 with a carrying value of N$ 12 500.00 4. A vehicle was sold for N$ 7 500.00 with a carrying value of N$ 3 000.00 5. The loan from Tyme Bank was repaid in full. 6. The equipment was disposed of for N$ 25 000.00 7. Land and building was sold by public auction for N$ 35 000.00 You are required to: 2.1 Do the journal entries to record Matheus withdrawal from the partnership. (12 Marks) 2.2 Prepare the following accounts to show the liquidation and dissolution of Matheus and Hamalwas Partnership: a. Realisation account. (6 Marks) b. Capital accounts of the partners (in a columnar form) in the general ledger. (8 Marks) 2.3 Mention and discuss three factors that may lead to the dissolution of a partnership. (6 Marks)Step by Step Solution
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