Wayne, Wendell and Wesley are partners who share profits and losses equally. Their financial position prior to liquidation follows: Wayne, Wendell and Wesley Partnership Statement of Financial Position As at June 30, 20xx Assets Liabilities and Capital Cash P 64,000 Liabilities P 264,000 72,000 40,000 24.000 Total Liabilities and Capital P 400,000 Non-cash Assets 336,000 Wayne, Capital Wendell, Capital Wesley, Capital Total Assets P 400,000 The non-cash assets with book value of P336,000 are sold for P156,000. Liabiliies in the amount of P264,000 are paid. Required: Prepare the statement of liquidation.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.
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