Problem #2 Lump-Sum Liquidation with Loss on Realization After several years of operations, the partnership of Concepcion, Macabata and Pedroso is to be liquidated. After making closing entries on March 31, 2011 the following accounts remained open: Account Balance Account Title Debit Credit Cash P 150,000 Non-cash Assets 2,600,000 Liabilities P 750,000 Concepcion, Capital 400,000 Macabata, Capital 600,000 Pedroso, Capital 1,000,000 The non-cash assets are sold for P2,150,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.
Problem #2 Lump-Sum Liquidation with Loss on Realization After several years of operations, the partnership of Concepcion, Macabata and Pedroso is to be liquidated. After making closing entries on March 31, 2011 the following accounts remained open: Account Balance Account Title Debit Credit Cash P 150,000 Non-cash Assets 2,600,000 Liabilities P 750,000 Concepcion, Capital 400,000 Macabata, Capital 600,000 Pedroso, Capital 1,000,000 The non-cash assets are sold for P2,150,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter19: Accounting For Partnerships
Section: Chapter Questions
Problem 10SPB: STATEMENT OF PARTNER SHIP LIQUIDATION WITH LOSS After several years of operations, the partnership...
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Problem #2
Lump-Sum Liquidation with Loss on Realization
After several years of operations, the partnership of Concepcion, Macabata and Pedroso is to be
liquidated. After making closing entries on March 31, 2011 the following accounts remained open:
Account Balance
Account Title Debit Credit
Cash P 150,000
Non-cash Assets 2,600,000
Liabilities P 750,000
Concepcion, Capital 400,000
Macabata, Capital 600,000
Pedroso, Capital 1,000,000
The non-cash assets are sold for P2,150,000. Profits and losses are shared equally.
Required: Prepare a statement of partnership liquidation and the entries to record the following:
1. Sale of all non-cash assets.
2. Distribution of loss on realization to the partners.
3. Payment of the liabilities.
4. Distribution of cash to the partners.
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