Question 2 Paul, Peter and Steve are partners in an office supply business. The following is their balance sheet as at 2021 June 30. Cost Depreciation Net Non-Current Assets Leasehold premises 21000 16000 5.000 Delivery vans 7 000 5.000 2000 Fixtures 3.000 1000 2.000 31.000 22.000 9.000 Current Assets Inventory 12.000 Accounts receivables Capital and Liabilities Capital Accounts 3.400 15.400 24.400 Paul 5.000 Peter 2000 Steve 2.000 9.000 Current Accounts Paul 3400 Peter 2.500 Steve 1700 7.600 Long-term loan 3.000 Current Liabilities Accounts payables Bank overdraft 3.900 900 4800 24 400 The partners share profits in the ratio of 2:2:1. On 2021 June 30, they decided to terminate the partnership. i. Paul took over a delivery van which had a book value of $1 000 at a valuation of $2 500. ii. Steve took over stock at a valuation of $6 000 which had cost $6 560. iii. A ready buyer was found for the premises, the remaining delivery vans, fixtures and fittings and the balance of stock, at an agreed price of $11 500. iv. Debtors realised the sum of $3 225. v. After creditors had been paid in full, the partners received monies due to them on their capital accounts or paid what was due to the firm. Prepare the following ledger accounts for dissolution of the partnership: A. Realisation account. (7 marks) B. Bank account. (4 marks) C. Partners' capital accounts. (5 marks) D. Partners' capital accounts if one partner is unable to pay the amount owed to the partnership. (4 marks) (Total 20 marks)