May 2017 Q1 a.

B & C Brothers are partners sharing profits and losses equally between themselves for many years. However, they have now decided to dissolve their partnership as at 31 December 2016. Below is their Statement of financial position as at 31 December, 2016:

Additional information:
At dissolution, the trade receivables realized was GH¢10,800,000 the land and buildings GH¢1,600,000 and the furniture and fittings GH¢3,800,000. The expenses incurred on dissolution were GH¢400,000 and discounts amounted to GH¢800,000 were received from suppliers.
Required:
Prepare
i) Realisation Account                                                                                                                                                         (5 marks)

ii) Cash Account                                                                                                                                                                  (3 marks)

iii) Partners’ Capital Account                                                                                                                                              (2 marks)