Mandy and Sandy are partners sharing Profit-Loss in the proportion of 4:2. The balance sheet...
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Mandy and Sandy are partners sharing Profit-Loss in the proportion of 4:2. The balance sheet of their firm as on 31-12-2019 is as follows: Amount in $ Amount in $ 67000 70000 137000 Particulars Assets: Fixed Assets Land and Building Machinery Total Fixed Assets Current Assets Inventory Debtors 16000 Less: Bad debt Reserve 1000 Cash Balance Total Assets 22000 15000 71000 108000 245000 68000 49000 Liabilities and Equity Partner's capital Accounts: Mandy Sandy General Reserve Total Reserves and Capital Current Liabilities: Creditors Mandy's Loan Total Liabilities and capital 117000 6000 1,23,000 80,000 42000 1,22,000 2,45,000 The Firm dissolved on 31-12-2019. You provided the following information: Realized $90,000 from Land and Building Mandy took machinery at $ 76000 Realized $12000 from Inventory $15000 recovered from debtors Dissolution expense is $10,000 Requirement: Pass necessary journal entries Prepare necessary accounts
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