The journal entry made by the trustee to liquidate the assets and liabilities should include an estate deficit of: The following data are provided by the APA Company:Assets at book value..P150,000105,000Assets at net realizable value...Liabilities at book value:Fully secured mortgage..Unsecured accounts and notes payable..60,00070,000Unrecorded liabilities:Interest ..Estimated cost of administering estate..5006,000The court has appointed a trustee to liquidate the company.

At the time of liquidation we have used Realisation account to show the surplus of deficit. We need…

Answered: liquidate t

Business

Accounting

liquidate t

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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Question

The journal entry made by the trustee to liquidate the assets and liabilities should include an estate deficit of:

The following data are provided by the APA Company:
Assets at book value..
P150,000
105,000
Assets at net realizable value...
Liabilities at book value:
Fully secured mortgage..
Unsecured accounts and notes payable..
60,000
70,000
Unrecorded liabilities:
Interest ..
Estimated cost of administering estate..
500
6,000
The court has appointed a trustee to liquidate the company.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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