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Paul, Peter and Steve are partners in an office supply business. The following is their balance sheet as at 2021 June 30.

The partners share profits in the ratio of 2:2:1. On 2021 June 30, they decided to terminate the partnership. i. Paul took over a delivery van which had a book value of $1 000 at a valuation of $2 500. ii. Steve took over stock at a valuation of $6 000 which had cost $6 560. iii. A ready buyer was found for the premises, the remaining delivery vans, fixtures and fittings and the balance of stock, at an agreed price of $11 500. iv. Debtors realised the sum of $3 225. v. After creditors had been paid in full, the partners received monies due to them on their capital accounts or paid what was due to the firm.

Prepare the following ledger accounts for dissolution of the partnership: A. Realisation account. B. Bank account. C. Partners capital accounts. D. Partners capital accounts if one partner is unable to pay the amount owed to the partnership.

	Cost	Depreciation	Net
Non-Current Assets
Leasehold premises	21 000	16 000	5 000
Delivery vans	7 000	5 000	2 000
Fixtures	3 000	1 000	2 000
	31 000	22 000	9 000
Current Assets
Inventory		12 000
Accounts receivables		3 400	15 400
			24 400
Capital and Liabilities
Capital Accounts
Paul		5 000
Peter		2 000
Steve		2 000	9 000
Current Accounts
Paul		3 400
Peter		2 500
Steve		1 700	7 600
Long-term loan			3 000
Current Liabilities
Accounts payables		3 900
Bank overdraft		900	4 800
			24 400

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