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2 Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold in lump sum for half of their book values to Venture Company less liquidation expenses of P15,000. All partners are solvent. Direction: a) Prepare a statement of liquidation and b) Journalize a) sale of all the non-cash assets, b) payment of liquidation expenses, c) payment of liabilities, d) deficient partner makes additional investment, e) distribution of remaining cash to the appropriate partners. 3. Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold for P760,000 less P8,000 liquidation expenses. Assume all partners are insolvent. a) Prepare a statement of liquidation. b) Journalize a) sale of the other assets and distribution of loss including the liquidation expenses, b) payment of liabilities, c) deficiency, if any, absorbed by other partner(s) and d) distribution of remaining cash to appropriate partner(s).

2 Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold in lump sum for half of their book values to Venture Company less liquidation expenses of P15,000. All partners are solvent. Direction: a) Prepare a statement of liquidation and b) Journalize a) sale of all the non-cash assets, b) payment of liquidation expenses, c) payment of liabilities, d) deficient partner makes additional investment, e) distribution of remaining cash to the appropriate partners. 3. Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold for P760,000 less P8,000 liquidation expenses. Assume all partners are insolvent. a) Prepare a statement of liquidation. b) Journalize a) sale of the other assets and distribution of loss including the liquidation expenses, b) payment of liabilities, c) deficiency, if any, absorbed by other partner(s) and d) distribution of remaining cash to appropriate partner(s).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2 Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold in lump sum for half of their book values to Venture Company less liquidation expenses of P15,000. All partners are solvent. Direction: a) Prepare a statement of liquidation and b) Journalize a) sale of all the non-cash assets, b) payment of liquidation expenses, c) payment of liabilities, d) deficient partner makes additional investment, e) distribution of remaining cash to the appropriate partners. 3. Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold for P760,000 less P8,000 liquidation expenses. Assume all partners are insolvent. a) Prepare a statement of liquidation. b) Journalize a) sale of the other assets and distribution of loss including the liquidation expenses, b) payment of liabilities, c) deficiency, if any, absorbed by other partner(s) and d) distribution of remaining cash to appropriate partner(s).
Transcribed Image Text:2 Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold in lump sum for half of their book values to Venture Company less liquidation expenses of P15,000. All partners are solvent. Direction: a) Prepare a statement of liquidation and b) Journalize a) sale of all the non-cash assets, b) payment of liquidation expenses, c) payment of liabilities, d) deficient partner makes additional investment, e) distribution of remaining cash to the appropriate partners. 3. Using the data in Exercise 1 but assume, instead, that all the non-cash assets were sold for P760,000 less P8,000 liquidation expenses. Assume all partners are insolvent. a) Prepare a statement of liquidation. b) Journalize a) sale of the other assets and distribution of loss including the liquidation expenses, b) payment of liabilities, c) deficiency, if any, absorbed by other partner(s) and d) distribution of remaining cash to appropriate partner(s).
1. Mary, Helga, and Luz are partners who share profits and losses in the ratio of 4 2 2, respectively. The partners decide to liquidate and gave you the following balances EXERCISES Cash Accounts Receivables Inventories P400,000 200,000 800,000 700,000 (100,000) Accounts Payable Notes Payable Mary, Capital Helga, Capital Luz, Capital P300,000 400,000 700,000 400,000 Equipment Accumulated Depreciation 200,000 a Accounts Receivable were sold for P175,000 b) Inventories were sold for P820,000 a Equipment were sold for P550,000 and d) Liquidation expenses of P12,000 were paid. Direction: a) Use the following table in support of the liquidation process. The cash balance after the payment of liabilities should reconcile with the capital balances. Capital Balances Cash Mary Helga Luz Balances before liquidation Sale of receivables at a loss Sale of inventories at a gain Sale of equipment at a loss Liquidation expenses paid Liabilities paid Distribution to partners 400,000 700,000 400,000 200,000
Transcribed Image Text:1. Mary, Helga, and Luz are partners who share profits and losses in the ratio of 4 2 2, respectively. The partners decide to liquidate and gave you the following balances EXERCISES Cash Accounts Receivables Inventories P400,000 200,000 800,000 700,000 (100,000) Accounts Payable Notes Payable Mary, Capital Helga, Capital Luz, Capital P300,000 400,000 700,000 400,000 Equipment Accumulated Depreciation 200,000 a Accounts Receivable were sold for P175,000 b) Inventories were sold for P820,000 a Equipment were sold for P550,000 and d) Liquidation expenses of P12,000 were paid. Direction: a) Use the following table in support of the liquidation process. The cash balance after the payment of liabilities should reconcile with the capital balances. Capital Balances Cash Mary Helga Luz Balances before liquidation Sale of receivables at a loss Sale of inventories at a gain Sale of equipment at a loss Liquidation expenses paid Liabilities paid Distribution to partners 400,000 700,000 400,000 200,000
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