Question 1 Mary, Jane and Susan are in partnership sharing profits and losses in the ratio 2:2:1 respectively. The following was their balance sheet as at 31 December 2018: Non-Current Assets Cost $ Depreciation. NBV S S Premises 42,000 32,000 10,000 Motor Vehicles 14,000 10,000 4,000 Furniture and Fittings 6,000 2,000 4,000 62.000 44.000 18,000 Current Assets Inventory 24,000 Trade Receivables 6,800 30,800 48.800 Capital and Liabilities Capitals: Mary 7,000 Jane 7,000 Susan 4,000 18,000 Current A/cs Mary 6,800 Jane 5,000 Susan 3.400 15.200 33,200 Loan from Toby 6,000 Current Liabilities: Trade Payables Bank overdraft 7,800 1.800 9.600 48.800 On 31 December 2018 the partners decide to terminate the business. The following took place: i. Mary took over one of the motor vehicles for $5,000 11. Stock was taken over by Susan for $12,000 iii. iv. V. vi. Premises, inventory, the remaining motor vehicles, furniture and fittings were sold for $9000, $12000, $1000 and $1000 respectively Receivables realised $6,450 and Payables were paid in full Dissolution Expenses amounted to $100 Susan was declared insolvent and was unable to repay the amount owed to the partnership. The partnership was terminated on December 31, 2018 A. You are required to prepare the following accounts to record the termination of the partnership: i. Realisation Account (7.5 marks) ii. Bank Account (5.5 marks) iii. Partners' Capital Account (7 marks)