Question 2
Vivo and Viva run a partnership business and share the profit or losses 3:2.
Financial Position as at 30 June 20x8
RM
RM
Non current asset
Capital: Vivo
26,250
Motor vehicle
35,000
Viva
30,000
Furniture
5,040
Current Account
Current Asset
Vivo
5250
Closing inventory
4620
Viva
4375
Trade Reveivable
5705
Bank
6440
Current liability
Trade Payable
3430
Here's what has happened during the liquidation of the business
a) The vehicle was taken over by Vivo at RM12,250.
b) The amount of money collected from customers who are in debt is RM5,000.
The balance is written off as bad debts.
c) The other assets were sold for RM8,500.
d) The balance of Accounts Payables is fully explained.
e) The realization expenditure paid is RM1,650.
f) All current account balances will be transfer to the capital account.
Required:
a)
Realisation Accounts
b)
Partnership capital Accounts
c)
Bank Accounts