Accounting 9706 · AS & A Level · The accounting system

The accounting system — practice question

Wang and Yuan, who divide profits and losses in the ratio $2:1$, agreed to end their partnership. Their condensed statement of financial position on $30$ September $2015$ was as follows:
(a)[5]

Prepare the partnership realisation account.

(b)[7]

Calculate the amount due to each partner when the bank account is closed on dissolution.

(c)[2]

State two reasons why a partner may have an overdrawn current account.

(d)[1]

State why partnerships maintain separate capital accounts for each partner.

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