The partners decide to dissolve the partnership. They are offered £40,000 for the building and the fixtures
and fittings. Aoife agrees to take over one car at a value of £2,500 and Declan takes over the other
remaining car at a value of £2,000. It turns out that £2,500 of the trade receivable are bad and the sundry
payables have promised to give the partners, on average 10% discount on settlement of the debt owed to
them if it is paid for on the 1 January 20X2. The loan will be paid off in full on that date. All the monies
in and out will occur on the 1 January 20X2. The dissolution expenses amount to £2,200.
Questions 1 to 4 should be answered from this following information
Aoife and Declan are in partnership, sharing profits equally. Their draft statement of financial position is
as follows:

-What payment/receipt from/to Declan is required to close his capital account on the dissolution of the partnership?

Question

The partners decide to dissolve the partnership. They are offered £40,000 for the building and the fixtures
and fittings. Aoife agrees to take over one car at a value of £2,500 and Declan takes over the other
remaining car at a value of £2,000. It turns out that £2,500 of the trade receivable are bad and the sundry
payables have promised to give the partners, on average 10% discount on settlement of the debt owed to
them if it is paid for on the 1 January 20X2. The loan will be paid off in full on that date. All the monies
in and out will occur on the 1 January 20X2. The dissolution expenses amount to £2,200.
Questions 1 to 4 should be answered from this following information
Aoife and Declan are in partnership, sharing profits equally. Their draft statement of financial position is
as follows:
 
-What payment/receipt from/to Declan is required to close his capital account on the dissolution of the partnership?

Quizplus · Accepted Answer

The Answer is B

The Partners Decide to Dissolve the Partnership