In the partnership Kop, Simpson, and Ferrera profits and losses are shared in the ratio 4:3:1. The agreed to dissolve the partnership at 30/ 6/1990 and Kop buy the goodwill for R10 800 and all the debtors for R27 600 and treats the goodwill as an asset like the debtors.
The land and building are sold to Simpson for R105 600 and he agrees to take over mortgage bond. Ferrera is allocated one motorvan at R3 000 while the other vehicles are disposed of for R4 320, being in a poor state and in need of repair.
Kop and Ferrera divide stock to the value of R14 400 equally between them and the balance is sold off for cash at R24 480. The furniture is sold forR1 680. Al creditors are paid with discounts of R1 020 being received.
The balance sheet as at 30/6/1990 was as follows
R R
Capital accounts
Kop 70 200 Land and building 99 000
Jones 52 650 Motorvans 9 300
Ferrera 17550 Furniture 2 400
Mortgage bond 45 000 Stock 40 800
Sundry creditors 13 800 Sundry debtors 47 700
199 200 199 200

Draw up the capital accounts , bank accounts and the realisation account.
 

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