Reference no: EM131536691

Question: Hale, Neath and Redcar, who had been carrying on business in partnership, sharing profits and losses in the proportions of one-half, one-third and one-sixth respectively, decided to dissolve partnership on 30th June, 1962. The balance sheet of the firm immediately before the dissolution was as follows:

In the realisation, the Debtors produced £2,492; the Furniture £149; the Stock £2,085; and the Goodwill £360. The expenses of the realisation amounted to £130. All the partners were solvent and any deficiency on capital account was made good. Prepare the Realisation Account, Cash Book and the Partners; Capital Accounts to show the final distribution. *Re-printed by courtesy of the Royal Society of Arts (R.S.A.).