WAEC Accounting 2023 Theory — Question 19

Model answer

PARTNERS' CAPITAL ACCOUNTS - final balances Taiwo: Realization account #2,625,000; Bank (balancing figure) #4,354,500. Balance brought down (current account) #915,750; total credits #6,979,500 matched against total debits #6,979,500 - Taiwo's account settles at nil after these transfers. Kehinde: Realization account #11,895,000; Balance b/d (current realization) #1,526,250; total #11,895,000 fully accounted for. Alaba: Realization account #6,516,750; Balance b/d (current realization) #610,500; total #6,516,750 fully accounted for. (In summary, after crediting each partner with their share of the realization profit and adjusting for dissolution expenses paid by Taiwo, the partners' capital accounts are settled/closed by payment through the bank, as shown in the workings above.)