The partnership of Frog, Lizard and Gecko who share profits in the ratio of 5:3:2 have asked you to complete the relevant ledger accounts to dissolve their business. They provide you with their Balance Sheet as at 31st May and some additional information you will require to complete this task. You are required to complete their ledger accounts in order to dissolve their partnership on 31/5/2015.
Balance Sheet as at 31/05/2015
| Non-current assets | ||
| Premises | 112 800 | |
| Less accumulated depreciation | 18 000 | 94 800 |
| Motor vehicle | 37 200 | |
| Less accumulated depreciation
|
13 200
|
24 000
|
| Current assets | 118 800 | |
| Inventory | 32 400 | |
| Accounts receivable | 28 800 | |
| Less provision for doubtful debts | 4 800 | 24 000 |
| Bank | 9 600 | |
| 184 800 | ||
| Current liabilities | ||
| Accounts payable | 36 000 | |
| 148 800 | ||
| Capital | ||
| Capital Frog | 60 000 | |
| Capital Lizard | 36 000 | |
| Capital Gecko | 24 000 | 120 000 |
| Current Account Frog | 9 600 | |
| Current Account Lizard | 7 200 | |
| Current Account Gecko | (12 000) | 4 800 |
| Non-current liabilities | 124 800 | |
| Mortgage on premises | 24 000 | |
| 148 000 |
Additional information
- Premises realised $78 000 after the mortgage had been paid
- Lizard took over the vehicle at an agreed value of $10 800
- $21 600 was received from accounts receivables
- Inventory realised $26 400
- Expenses of the dissolution amounted to $9 600
