Poole and Burns, who share profits and losses equally, decide to dissolve their partnership as at June 2013. Their statement of financial position on that date was as follows:

The accounts receivable realised $8,200. The buildings $66,000 and the tools and fixtures $1,800. The expenses of dissolution were $400 and discounts totaling $300 were received from creditors.

Required:

Prepare the accounts necessary to show the results of the realization and of the disposal of cash.

$ Buildings Tools and fixtures $ 80,000 2,900 82,900 Accounts Receivable Cash 8,400 600 9,000 91,900 Capital account: Poole Burns Accounts payable 52,680 35,120 4,100 91,900