The following terms and conditions were agreed upon among the partners:

1. Ako was unable to pay up the amount due to the partnership. Shawn and Leela agreed to absorb Akos debts.
2. Leela took over all the debtors at RM165,000.
3. Leela agreed to take over the plant and machinery at book value to start up his own business.
4. Shawn took over some assets at the following values:

RM

Motor vehicle 85,000

Inventories 100,000

5. Shawn was required to settle the creditors for RM54,000.
6. Dissolution expenses of RM2,500 were paid.

You are required to prepare the following ledger accounts in T-format as at 31 March 2020 for the dissolution:

c) Other partnership accounts (Bank, Creditors, Debtors, Inventories, Furniture & Fitting, Motor vehicles, and Plant & Machinery Accounts). (10 marks )

Question 2 (CLO 2) The three partners of ASL Trading, namely Shawn, Leela and Ako agreed to share profits and losses of the partnership in a ratio of 4:3:1. Due to various disagreements amongst the partners, they decided to dissolve the partnership on 31 March 2020. The balance sheet of the partnership as at 31 March 2020 is as follows: RM RM Non-Current Assets: Plant and Machinery Motor vehicle Furniture and Fittings 165,000 110,000 25,000 300,000 Current Assets: Inventories Debtors Bank 115,000 185,000 18,000 318,000 Current Liability: Creditors (57,600) 260,400 560,400 Capital: Shawn Leela Ako 340,000 290,000 (69,600) 560,400