Alpha, Beta and Gamma were in partnership, sharing profits in the ratio of their fixed capitals On July 1, 2020 the partnership was dissolved, and Gamma took over a vehicle valued at $45,000. Creditors were paid $288,000 in full settlement, while debtors were allowed a discount of $15,000. The loan was repaid in full. Legal and accounting costs associated with the dissolution amounted to $55,000. $ $ Non-Current Assets Equipment 925,000 Motor vehicles 162,500 Current assets 1,087,500 Inventory 465,000 Receivables 232,500 Bank 60,000 Total current assets 757,500 Total assets 1,845,000 Financed by: Capital accounts Alpha 765,000 Beta 255,000 Gamma 255,000 1,275,000 Current accounts Alpha 60,000 Beta 40,000 Gamma 20,000 120,000 Long-term liability Loan 150,000 Current liability Payables 300,000 Total capital and liabilities 1,845,000 The other assets were sold, and realized: Equipment, $945,000; Motor vehicles, $108,000, Inventory, $468,000. Prepare the realization, bank and capital account
Alpha, Beta and Gamma were in
|
|
$ |
$ |
|
Non-Current Assets |
|
|
|
Equipment |
|
925,000 |
|
Motor vehicles |
|
162,500 |
|
Current assets |
|
1,087,500 |
|
Inventory |
465,000 |
|
|
Receivables |
232,500 |
|
|
Bank |
60,000 |
|
|
Total current assets |
|
757,500 |
|
Total assets |
|
1,845,000 |
|
Financed by: |
|
|
|
Capital accounts |
|
|
|
Alpha |
765,000 |
|
|
Beta |
255,000 |
|
|
Gamma |
255,000 |
|
|
|
|
1,275,000 |
|
Current accounts |
|
|
|
Alpha |
60,000 |
|
|
Beta |
40,000 |
|
|
Gamma |
20,000 |
|
|
|
|
120,000 |
|
Long-term liability |
|
|
|
Loan |
|
150,000 |
|
Current liability |
|
|
|
Payables |
|
300,000 |
|
Total capital and liabilities |
|
1,845,000 |
The other assets were sold, and realized: Equipment, $945,000; Motor vehicles, $108,000, Inventory, $468,000.
Prepare the realization, bank and capital account
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