Dissolution of partnership
Question:
Candy and Mandy is a partner in a partnership that shares the profit or loss equally. On June 30, 1993, they agreed to dissolve their partnership. Here is their Balance Sheet on that date;
Balance Sheet at June 30, 1993
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Assets $
- Vehicles 7,700
- Shop tools 3,520
- Stock 3,785
- Debtors 4,288
- Cash in bank 1,352
=20,645
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Owner's equity $
- Candy's capital 8,250
- Mandy's capital 7,250
- Creditors 5,145
=20,645
Vehicles, shop tools, and the stock has been sold at the price of $ 15,420. A total of $ 4,200 was received from the debtor. All creditors have been paid in full and realization expenses of $ 195 has also been described.
All the money has been banked and payments made by check.
Set up:
(a) The entry to record the dissolution of the Journal;
(b) Realization Account;
(c) Bank Accounts; and
(d) Candy and Mandy's Capital Accounts.
I just copied this question from my textbook.
I'm too lazy to put the table, so the balance sheet would looks weird.