Solution to this problem Problem #13Preparation of Journal Entries for Partnership Liquidationveade Masinsin and Biore are all famous athletes who have been operating a sportsmemorabilia store for many years. The partnership decided to liquidate its operationther than sell the business because they are each about to retire and want to go theirseparate ways. They have been sharing profits in the ratio of 40% to Tugade, 40% toMasinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2019 follows:Trial BalanceJanuary 1, 2019CashAccounts ReceivableAllowance for Uncollectible AccountsMerchandise InventoryP 42,000189,600(P 11,100/293,1009,000120,00031,500Prepaid InsuranceLandOffice EquipmentAccu. Depreciation-Office EquipmentMachineryAccu. Depreciation-MachineryBuildingAccu. Depreciation-BuildingNotes PayableAccounts Payable10,50081,60032,100375,000112,500120,000Mortgage PayableTugade, CapitalMasinsin, CapitalBiore, CapitalTotals220,500240,000135,00060,000200,100P1,141,800P1,141,800January 2019, the events took place during the process of liquidating the partnership:Jan. 6Accounts receivable of P151,500 are collected, and the allowance for uncollectible 3800accounts is written off the books.Merchandise inventory is sold for P160,500. 32,600-055A refund on the prepaid insurance is expected totaling P3,000. 4oboProperty and equipment were sold lump sum to Sibug Company for P111,000. Themortgage on the building was also transferred to Sibug.The remaining creditors were paid in full.The deficit in Masinsin's capital account was absorbed by Tugade and Biore.The deficit in Tugade's capital account was absorbed by Biore.The remaining partnership cash is distributed to Biore.9.111420202024

Problem 13 solution : Profit sharing ratio of Tugade, Masinsin and Biore = 40%, 40% and 20%…

January 2019, the events took place during the process of liquidating the partnershi Accounts receivable of P151,500 are collected, and the allowance for uncollectible 2 accounts is written off the books. Merchandise inventory is sold for P160,500. 32,600-5 A refund on the prepaid insurance is expected totaling P3,000. 4obo Jan. 6 11 uoro sold lump sum to Sibug Company for P111,000, The