QUESTION 4 (22 MARKS: 40 MINUTES) Sparro, Finch and Robin have been in partnership for many years, sharing profits and losses in the ratio 2 : 2 : 1 respectively. It was agreed to dissolve the partnership It was agreed to sell for RM108,000. It was also agreed that Hawk Ltd would settle this debt by paying each partner RM36,000, and these amounts were paid into the partners' bank accounts RM 20 108,000 Dissolution Account 2021 RM 2021 31 Dec Fixtures and Fittings 96,600 31 Dec Creditors' Discount Motor Vehicles 54,800 Hawk Ltd Goodwill 36,000 Capital Accounts Stocks 22,200 Sparro Debtors 53,400 Finch Cash: Dissolution exp. 200 Robin Bank Interest 440 Bank Disolution loss Sparro Finch Robin 263,640 18,200 17,200 20,400 97,600 888 888 444 263,640 5 MKF1033 INTRODUCTION TO FINANCIAL ACCOUNTING 888 Capital Accounts 2021 Sparro Finch Robin 21 SparroFinch Robin RM RM RM RM RM RM 31 Dissolution 31 Bal b/d 70,520 90,740 80,940 Dec loss 888 444 Dec Dissolution a/c 18,200 17,200 20,400 Hawk Ltd 36,000 36,000 36,000 Bank 15,432 36,652 24,096 70,520 90,740 80,940 70,520 90,740 80,940 Bank Account 2021 31 Dec RM 2021 97,600 31 Dec RM 17,400 Dissolution Account Bal b/d 3580 440 Creditors Dissolution a/c interest Capital accounts: Finch Robin Sparro 36,652 24,096 15,432 97,600 97,600 Required: A. Explain THREE (3) strength and TWO (2) weaknesses of Sparro, Finch and Robin Partnership Company. (12 marks) B. Give FOUR (4) reasons why Sparro, Finch and Robin dissolved the partnership (10 marks) END OF QUESTIONS