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    Partnership Profit and Losses

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    Please check my answer my bank balance is not balancing.Please let me know where i made a mistake and give me the correct figure.Please help me as I am preparing for my final exams.

    Dougal and Florence, who have been in a partnership for many year, decided to retire and dissolve the partnership on 30 september 2003. Profits and losses were shared in the ratio of the partners' Capital account balances which were fixed at Dougal $80,000 and Florence $40,000. The partnership balance sheet at 30 September 2003 is as follows (see attachment)

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    First mistake: Your problem clearly states that the debts were collected and banked. Instead you have shown Debtors 17230 in the realization account. You have correctly shown the bad debts in the realization account but as these bad debts are not reflected in ...

    Solution Summary

    The expert examines partnership profit and losses.