Question 3 (30 Marks)

Pascoe, Canon and Fradley were in a partnership which traded as Trio Traders. They shared profits in the profits and losses equally. The partners decided to liquidate the partnership on 1August 20.5 by means of simultaneous liquidation. The abridged statement statement of financial position as at 31July 20.5, the financial yearend of Trio Traders,was as follows:

PDF Business Statistics A Study Guide X chegg - Search C Get Homework Help With Chegg X PDF 2022 Distance Assignments - AFIX + O X File | E:/2022%20Assignments/2022%20Distance%20Assignments%20-%20AFE3691%20-%20Financial%20Accounting%2014.pdf a + > : 16 of 25 a Q + + Reset (D Page view A Read aloud | T Add text IV 75% rase 19 TRIO TRADERS STATEMENT OF FINANCIAL POSITION AS AT 31JULY 20.5 ASSETS N$ NON CURRENT ASSETS Property, plant and equipment goodwill 117 000 90 000 27 000 CURRENT ASSETS Inventories trade receivables (debtors control) Cash and cash equivalents (bank) TOTAL ASSETS 108 000 60 000 40 000 8 000 225 000 EQUITY AND LIABILITIES TOTAL EQUITY capital Current accounts Other components of equity (asset replacement reserve) 155 000 132 500 7500 15 000 TOTAL LIABILITIES NON CURRENT LIABILITIES 70 000 39 000 Long term borrowings (long term loan) 39 000 CURRENT LIABILITIES Trade and other payables (creditors control) TOTAL EQUITY AND LIABILITIES 31 000 31 000 225 000 o 9:13 AM Type here to search i Y W C 28C Sunny ^ENG 3/9/2022 PDF Business Statistics A Study Guide X Q chegg - Search X C Get Homework Help With Chegg X PDF 2022 Distance Assignments - AFIX + X File | E:/2022%20Assignments/2022%20Distance%20Assignments%20-%20AFE3691%20-%20Financial%20Accounting%2014.pdf e + > : 17 of 25 a Q + (L Page view A Read aloud T Add textDraw V Highlight Erase G 19 The capital and current account balances of each partner at 31 July 20.5: Pascoe Cannon N$ N$ Capital account 65 000 45 000 Fradley N$ 22 500 (13000) 9500 Current account 12 000 8500 total 77 000 53 000 Extract the note regarding property, plant and equipment for the year ended 31 July 20.5 Furniture and fittings Vehicle N$ NS Total N$ 140 000 50 000 90 000 Carrying amounts at31 July 20.5 Type here to search o ' W 28C Sunny ^4x ENG 9:15 AM 3/9/2022 Business Statistics A Study Guide X chegg - Search X C Get Homework Help With Chegg X 2022 Distance Assignments - AFIX + O c File E:/2022%20Assignments/2022%20Distance%20Assignments%20-%20AFE3691%20-%20Financial%20Accounting%201A.pdf e : 18 of 25 o + Page view A Read aloud T Add text V Draw Highlight Erase G 19 Page 17 of 25 FACULTY OF COMMERCE, MANAGEMENT AND LAW On 1 August 20.5, the furniture and fittings were sold for N$42 000 cash. The vehicle was taken over by Pascoe at a mutually agreed value of N$48 000. The inventory was sold for N$30 000 cash. The debtors settled their debts in full by paying N$ 35 000 to the partnership All the creditors were paid and a settlement discount of N$2 300 was received .N$39 000 was repaid in respect of the long term loan. The liquidation costs were N$ 15 000 All partners have sufficient personal assets to cover any deficits in their capital accounts. are required to: 3.1 Prepare the Bank and capital ledger accounts in the partnerships records in order to carry out the dissolution. ( 30 Marks) Type here to search o 9:16 AM EI ' w 0 28C Sunny ^4x ENG 3/9/2022