Question 1 X,Y and Z were partners for many years, sharing profits and losses in the ratio 2:1:1. They decided to dissolve the partnership on August 30, 2022.

The summarized statement of financial position at that date was:

Non-current assets

Building 2,500,000

Machinery 1,500,000

Furniture and fixtures 700,000 and 4,700,000

Current assets Inventory 900,000

Receivables 800,000

Bank 150,000 1,850,000 6,550,000

Capital accounts X 600,000 Y 300,000 Z 300,000 1,200,000

Current accounts X 200,000 Y 200,000 Z (450,000) (50,000)

Non-current liabilities Loan 400,000

Current liabilities Payables 5,000,000 6,550,000

The following information is available:

1. X assumed some of the machinery at an agreed value of $80,000. The remaining machinery realized $900,000.

2. Receivables were settled after allowing a 5% discount.

3. Payables were settled in full after deducting a 2% discount.

4. Buildings and Furniture and fixtures were sold for $3,000,000 and $550,000 respectively.

5. Inventory was sold at a loss of $20,000.

6. Dissolution expenses amounted to $8,000

3 Required a) Prepare the following accounts:

i. Realization [10 marks]

ii. Capital [10marks]

iii. Bank [8.5 marks]

Question 2 In the context of accounting, what is relevance and how does timeliness enhance this fundamental characteristic of useful financial information?