Qno 1 (a) Pool and Burns, who share profits and losses equally, decide to dissolve their partnership at June 30, 2015. Their balance sheet on that date was as follows: (Rs.) ( Rs.) Buildings 80,000 Tools and fixtures 2,900 82,900 Debtors 8,400 Cash 600 9,000 Sundry creditors ( 4,100 ) Net current assets 4,900 Total Assets 87,800 Capital account. Pool 52,680 Burns 35,120 87,800 The debtors realized Rs. 8,200, the building Rs. 66,000 and tools and fixtures Rs. 1,800. The expenses of dissolution were Rs. 400 and discounts totaling Rs. 300 were received from creditors. Required: Prepare the accounts necessary to show the results of the realization and of the disposal of the cash.

Qno 1 (b) Piers, Quick, Right and Squires were in partnership, sharing profits and losses in the ratio 4:3:2:1. They decided to dissolve the partnership on 31st December, 2012 at which date the balance sheet of the partnership was as follow:

The partners decided that, as soon as the creditors were paid, any cash received should be immediately distributed to the partners. All the creditors were paid on 11th January, after deducting cash discounts of 2,000. On 1st March it was decided that the remaining debts were irrecoverable and that the dissolution should be considered as being completed. Required: Prepare a schedule setting out the payments that could be made to the partners subject to the provision that there should be no possibility that any of the partners would be called upon to repay cash. Realization expenses should be ignored.

Goodwill249 20,000 Capital accounts Piers Quick Right 60,000 30,000 60,000 000 am 0321 Land and Buildings Stock 110,000 20,000 Squires 20,000 170,000 Debtors 40,000 Creditors 30,000 Balance at Bank 10,000 200,000 200,00 The assets were realized as follows: 5th Jan. Stock 18.000 Debtors (part) 16,000 2nd Feb. Good will 6,000 2nd Feb. Land and buildings (part) 22.000 1st Mar. Debtors (balance) 20.000 1st Mar. Land and buildings (balance) 120.000 8th Jan. Goodwill249 20,000 Capital accounts Piers Quick Right 60,000 30,000 60,000 000 am 0321 Land and Buildings Stock 110,000 20,000 Squires 20,000 170,000 Debtors 40,000 Creditors 30,000 Balance at Bank 10,000 200,000 200,00 The assets were realized as follows: 5th Jan. Stock 18.000 Debtors (part) 16,000 2nd Feb. Good will 6,000 2nd Feb. Land and buildings (part) 22.000 1st Mar. Debtors (balance) 20.000 1st Mar. Land and buildings (balance) 120.000 8th Jan