EGO Problem #3 Lump-Sum Liquidation Gulane, Tormis, and Sailadin decided to liquidate their partnership on June 30, 2019. The partners shared profits and losses in the ratio of 2:2:1, respectively. The firm's post- closing trial balance follows: Gulane, Tormis, and Sailadin Post-Closing Trial Balance June 30, 2019 Account Name Debit Credit Cash P 419,170 612,300 Merchandise Inventory Other Assets 472,680 Accounts Payable Gulane, Capital Tormis, Capital Sailadin, Capital P 131,350 561,600 436,800 374,400 P1,504,150 P1,504,150 The merchandise inventory and the other assets were sold for P582,800 and P550,900, respectively. Required: Prepare the liquidation journal entries.
EGO Problem #3 Lump-Sum Liquidation Gulane, Tormis, and Sailadin decided to liquidate their partnership on June 30, 2019. The partners shared profits and losses in the ratio of 2:2:1, respectively. The firm's post- closing trial balance follows: Gulane, Tormis, and Sailadin Post-Closing Trial Balance June 30, 2019 Account Name Debit Credit Cash P 419,170 612,300 Merchandise Inventory Other Assets 472,680 Accounts Payable Gulane, Capital Tormis, Capital Sailadin, Capital P 131,350 561,600 436,800 374,400 P1,504,150 P1,504,150 The merchandise inventory and the other assets were sold for P582,800 and P550,900, respectively. Required: Prepare the liquidation journal entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PRO
SECTIO
Problem #3
Lump-Sum Liquidation
closing trial balance follows:
Gulane, Tormis, and Sailadin
Post-Closing Trial Balance
June 30, 2019
Account Name
Debit
Credit
Cash
P 419,170
612,300
472,680
Merchandise Inventory
Other Assets
Accounts Payable
Gulane, Capital
Tormis, Capital
Sailadin, Capital
P 131,350
561,600
436,800
374,400
P1,504,150
P1,504,150
The merchandise inventory and the other assets were sold for P582,800 and P550,900,
respectively.
Required: Prepare the liquidation journal entries.
Transcribed Image Text:Problem #3
2019
June
30 Cash
1,133,700
Merchandise Inventory
Other Assets
Gain on Realization
To record sale of noncash assets.
612,300
472,680
48,720
30
Gain on Realization
Gulane, Capital
Tormis, Capital
Sailadin, Capital
To record distribution of gain.
48,720
19,488
19,488
9,744
30
Accounts Pavable
Cash
To record payment of liabilities.
131,350
131,350
Gulane, Capital
Tormis, Capital
Sailadin, Capital
Cash
30
581,088
456,288
384,144
To secord final distribution to partners.
1,421,520
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