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 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....

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

Jun 09, 2022

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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....

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