Additional information: A. The personal assets (excluding partnership capital and loan interests) and personal liabilities of each partner as of Dec. 1,2021, are presented below: Shadow Personal assets Personal liabilities Personal net worth Ego Self- 250,000 254,000 350,000 (230,000) (240,000) (375,000) 20,000 14,000 (25,000) B. Shadow, Ego, and Self share profit and losses in the ratio of 20:40:40, respectively C. All of the non-cash assets were sold on December 10,2021 for P240,000. Required: 1. Statement of liquidation. 2. Journal entries.
Additional information: A. The personal assets (excluding partnership capital and loan interests) and personal liabilities of each partner as of Dec. 1,2021, are presented below: Shadow Personal assets Personal liabilities Personal net worth Ego Self- 250,000 254,000 350,000 (230,000) (240,000) (375,000) 20,000 14,000 (25,000) B. Shadow, Ego, and Self share profit and losses in the ratio of 20:40:40, respectively C. All of the non-cash assets were sold on December 10,2021 for P240,000. Required: 1. Statement of liquidation. 2. Journal entries.
Additional information: A. The personal assets (excluding partnership capital and loan interests) and personal liabilities of each partner as of Dec. 1,2021, are presented below: Shadow Personal assets Personal liabilities Personal net worth Ego Self- 250,000 254,000 350,000 (230,000) (240,000) (375,000) 20,000 14,000 (25,000) B. Shadow, Ego, and Self share profit and losses in the ratio of 20:40:40, respectively C. All of the non-cash assets were sold on December 10,2021 for P240,000. Required: 1. Statement of liquidation. 2. Journal entries.
Shadow, Ego and Self have decided to liquidate their partnership on December 1,2021. The statement of financial position is shown below:
(Pls see attached pictures for the questions)
Transcribed Image Text:JUNGIAN Partnership
Statement of Financial Position
As of Dec. 1,2021
Assets
Cash
25,000.00
Accounts receivable, net
75,000.00
Inventories
100,000.00
Property, plant & equipment, net
300,000.00
Total Assets
500,000.00
Liabilities and Capital
Liabilities
Accounts payable
Loan payable-Ego
Total liabilities
P
240,000.00
30,000.00
P 270,000.00
Capital
Shadow, Capital P 120,000.00
Ego, Capital
Self, Capital
Total Capital
Total Liabilities and capital
50,000.00
P 60,000.00
P
230,000.00
500,000.00
Transcribed Image Text:Additional information:
A. The personal assets (excluding partnership capital and loan
interests) and personal liabilities of each partner as of Dec.
1,2021, are presented below:
Shadow
Ego
Self-
Personal assets
250,000 254,000 350,000
Personal liabilities
(230,000) (240,000) (375,000)
20,000
Personal net worth
14,000 (25,000).
B. Shadow, Ego, and Self share profit and losses in the ratio of
20:40:40, respectively
C. All of the non-cash assets were sold on December 10,2021
for P240,000.
Required:
1. Statement of liquidation.
2. Journal entries.
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.
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