This document contains solutions to accounting problems involving the dissolution of partnerships. Question 1 involves calculating partners' capital balances after the realization of partnership assets and distribution of profits. Question 2 involves accounting for the dissolution of a partnership between three partners, including recording the realization of assets and distribution of profits and capital balances to partners.

1. BKAF 3063 FINANCIAL ACCOUNTING & REPORTING III
ACCOUNTING FOR PARTNERSHIP
TUTORIAL 5
SOLUTION
QUESTION 1
Realisation Account
Freehold land 100,000 Creditors 8,000
Office building
Motor Vehicles
26,000
45,000
Loan 20,000
Inventory
Debtors
3,000
12,000
Bank:
Land
Vehicles
160,000
15,000
Bank: Legal fees
Creditors
500
7,600
Debtors 10,000
Aminah : Loan 20,000 Aminah –office building 18,000
Profit on realisation:
Aminah 17,840
- Car 25,000
Badariah 17,840 Badariah - Inventory 2,700
Dahlia 8,920
44,600
258,700 258,700

2. Bank Account
Land
Vehicle
Debtors
Capital: Dahlia
160,000
15,000
10,000
1,000
Balance
Creditors
Realisation:
Legal fees
Capital:
Aminah
Badariah
12,000
7,600
500
86,794
79,106
186,000 186,000
Account Capital
Aminah Badariah Dahlia Aminah Badariah Dahlia
Currentac 40,000 Balance b/d 60,000 45,000 16,000
Currentac 40,000 25,000
Realisation: Realisation:
Build.taken 18,000 Loan 20,000
Car taken 25,000 Profit 17,840 17,840 8,920
Inv.Taken 2,700
Dahlia 8,046 6,034 Bank 1,000
Bank 86,794 79,106 Aminah 8,046
Badariah 6,034
137,840 87,840 40,000 137,840 87,840 40,000
Calculation:
Dahliacapital - Dr balance 40,000
Cr Balance 24,920 (16,000 = 8,920)
15,080
Pay (1,000)
Balance 14,080
Aminah: 60,000/(60,000 + 45,000) x 14,080 = 8,046
Badariah: 45,000 / (60,000 + 45,000) x 14,080 = 6,034

3. QUESTION 2
(a)
Realisation Account
RM RM
Premises 80,000 Loan: Bedin 8,000
Equipment 50,000 Finance Co. 20,000
Vehicles 30,000 Creditors 42,000
Inventories 40,000 Bank o/draft 32,000
Debtors 50,000 Bank:
Bank: Premises 115,000
Creditors [42,000 - 2,000] 40,000 Equipment [50,000 – 10,000] 40,000
Dissolution
expenses
1,500 Debtors [50,000 – 1,500] 48,500
Bank o/draft 32,000 Bedin: Vehicles [80% x 30,000]] 24,000
Finance Co. 20,000 Deris: Invent. [90% x 40,000] 36,000
Loan: Bedin 8,000
Profit on Realisation:
Bedin [0.5x14,000] 7,000
Ceyla[0.3x14,000] 4,200
Deris[0.2 x 14,000] 2,800 14,000
365,500 365,500
(b)
Bank Account
RM RM
Balance b/d 112,000 Creditors
40,000
Realisaton: Realisaton:
Premises 115,000 Bank o/draft 32,000
Equipment [50,000 – 10,000] 40,000 Dissolution expenses 1,500
Debtors [50,000 – 1,500] 48,500 Loan: Finance Co. 20,000
Capital: Bedin 16,000 Capital: Bedin 174,964
Deris 4,400 Ceyla 67,436
335,900 335,900

4. (c)
Capital Account
Bedin Ceyla Deris Bedin Ceyla Deris
RM RM RM RM RM RM
Realisation: Balance b/d 160,000 60,000 20,000
Inventory
Taken Over
36,000/ Current a/c 10,000 4,000 6,000
Vehicles
Taken Over
24,000 Realisation:
Deris 2,036 764 Profit 7,000 4,200 2,800
Bank 174,964 67,436 Loan 8,000
Bank 16,000 4,400
Bedin 2,036*
Ceyla 764**
201,000 68,200 36,000 201,000 68,200 36,000
* Amount paid by Bedin:
Deris’s capital a/c balance is a debit = 36,000 – [20,000 + 6,000 + 2,800] = 7,200
But Deris could only pay the business (4,400)
So Bedin & Ceyla would have to pay the balance of 2,800 as follows:
Bedin: 2,800 x 160,000/[160,000 + 60,000] = 2,036
Ceyla: 2,800 x 60,000/[160,000 + 60,000] = 764**