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The following terms and conditions were agreed upon among the partners: Ako was unable to pay up the amount due to the partnership. Shawn and
The following terms and conditions were agreed upon among the partners:
- Ako was unable to pay up the amount due to the partnership. Shawn and Leela agreed to absorb Akos debts.
- Leela took over all the debtors at RM165,000.
- Leela agreed to take over the plant and machinery at book value to start up his own business.
- Shawn took over some assets at the following values:
RM
Motor vehicle 85,000
Inventories 100,000
- Shawn was required to settle the creditors for RM54,000.
- 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:
b) Partners capital accounts. ( 9.5marks)
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