II. Comprehensive Problem The ZODIAC Partnership has suffered financially due to poor results of operations for the past three years. Lyon, Virgo, and Aquarius share profits and losses 40%, 20%, and 40%, respectively. Disillusioned by the setback, the partners are considering the liquidation of their partnership. The following condensed partnership statement of financial position as of December 31,2020, the end of the calendar year. ZODIAC Partnership Statement of Financial Position As of 31 December 2020 Assets Cash Inventories Furnitures and Fixtures P 30,000 40,000 P 300,000 Liabilities and Partners' Equity Accounts Payable Lyon, Loan Lyon, Capital Virgo, Capital Aquarius, Capital P 49,000 20,000 95,000 100,000 106,000 Total Liabilities and Total Assets P 370,000 Partners' Equity P 370,000 Additional information: a. All of the non-cash assets are sold for P40,000. b. Lyon and Virgo are personally solvent while Aquarius is personally insolvent. RITAS Required: A. Prepare the statement of liquidation B. Prepare the journal entries related to the liquidation process IUSTI

II. Comprehensive Problem The ZODIAC Partnership has suffered financially due to poor results of operations for the past three years. Lyon, Virgo, and Aquarius share profits and losses 40%, 20%, and 40%, respectively. Disillusioned by the setback, the partners are considering the liquidation of their partnership. The following condensed partnership statement of financial position as of December 31,2020, the end of the calendar year. ZODIAC Partnership Statement of Financial Position As of 31 December 2020 Assets Cash Inventories Furnitures and Fixtures P 30,000 40,000 P 300,000 Liabilities and Partners' Equity Accounts Payable Lyon, Loan Lyon, Capital Virgo, Capital Aquarius, Capital P 49,000 20,000 95,000 100,000 106,000 Total Liabilities and Total Assets P 370,000 Partners' Equity P 370,000 Additional information: a. All of the non-cash assets are sold for P40,000. b. Lyon and Virgo are personally solvent while Aquarius is personally insolvent. RITAS Required: A. Prepare the statement of liquidation B. Prepare the journal entries related to the liquidation process IUSTI

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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