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Q.9. Said Motor LLC is running a partnership business last 20 years. ASR good reputation in sultanate of Oman. ASR dealing auto parts, mobile oil and auto repair and maintenance. Last few years overall economic growth and oil prices continue decreasing and due to that reason firm continue running losses. A long discussion the partners decided to dissolve the firm. The partners are Akbar, Iqbal, Samar, and Rahil sharing profit and losses in the ratio of 6:3:3:6.

The closing balances of assets, liabilities and capitals as on 31st December,2019 was given below As on 31St December 2019 Name of Accounts OMR Cash at Bank 283,655 Bills Payable 462,300 Accounts Receivable 1,009,528 Creditors 263,242 Inventory 536,935 Outstanding Rent 730,609 Furniture 1,514,536 Akbars Capital 4,046,563 Machinery 2,724,149 Iqbals Capital 1,732,190 Building 1,835,688 Samars Capital 2,760,000 Equipment 1,509,663 Rahils Capital 3,593,750 Land 5,750,000 Profit & Loss A/c 485,875 General Reserve A/c 1,089,625 They decided to dissolve the firms. The following term amounts were realized: a. Machinery, Equipment and Furniture are realized 12% less of total cost, Provision for doubtful debt is to be created on debtors at 12%,The value of inventory stock is reduced by 17%,Sundry Creditors paid at 10% discounts, Land to be appreciated by20% and Bills payable were paid 90% and Outstanding Rent were paid full amount. b. Rahil are agreeing to take Building and Workshop equipment OMR1,700,000 and OMR 1,400,000, respectively. You are required a.

To pass necessary Journal entries. (2 Marks)

b. To prepare Realization Account, Bank Accounts and Partners Capital Account. (3 Marks

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