nador Dizori, Jurel Tamala, and Jonah Dimalanta who sh iheir partnership on December 31, 2020. Their Statement of Financial Position is shown below: Centerpoint Commercial Statement of Financial Position As of December 31, 2020 Assets Liabilities and Partners' Equity 49,000 20,000 95,000 100,000 106,000 Cash Non-cash P P. 30,000 Liabilities 340,000 Dizon, Loan Dizon, Capital Tamala, Capital Dimalanta, Capital Total Liabilities and Partners' Equity Total Assets 370,000 P. 370,000 Assume: Deficient partners are insolvent and absorbed by the solvent partner. Required: Prepare Statement of Partnership Liquidation in two (2) separate cases and corresponding journal entries in recording the liquidation process. a. Non-cash assets were sold for P350,000. b. Non-cash assets were sold for P200,000. PROBLEM 2 The partnership of Jay Saberon and Ariane Lopez is going to be dissolved and liquidated. Their liability and capital account balances are as follows: Accounts Payable P 20,000 J. Saberon, Loan P 5,000 J. Saberon, Capital P 8,000 A. Lopez, Capital P 25,000 Their bank pass book shows a deposit under their business name of P3,000 which reconciles with the ledger balance. All non-cash assets were sold for P40,000. The partners share profit and loss on the ratio 4:1. Required: 1. Prepare the Statement of Partnership Liquidation. 2. Prepare jounal entries pertinent to the liquidation process.
nador Dizori, Jurel Tamala, and Jonah Dimalanta who sh iheir partnership on December 31, 2020. Their Statement of Financial Position is shown below: Centerpoint Commercial Statement of Financial Position As of December 31, 2020 Assets Liabilities and Partners' Equity 49,000 20,000 95,000 100,000 106,000 Cash Non-cash P P. 30,000 Liabilities 340,000 Dizon, Loan Dizon, Capital Tamala, Capital Dimalanta, Capital Total Liabilities and Partners' Equity Total Assets 370,000 P. 370,000 Assume: Deficient partners are insolvent and absorbed by the solvent partner. Required: Prepare Statement of Partnership Liquidation in two (2) separate cases and corresponding journal entries in recording the liquidation process. a. Non-cash assets were sold for P350,000. b. Non-cash assets were sold for P200,000. PROBLEM 2 The partnership of Jay Saberon and Ariane Lopez is going to be dissolved and liquidated. Their liability and capital account balances are as follows: Accounts Payable P 20,000 J. Saberon, Loan P 5,000 J. Saberon, Capital P 8,000 A. Lopez, Capital P 25,000 Their bank pass book shows a deposit under their business name of P3,000 which reconciles with the ledger balance. All non-cash assets were sold for P40,000. The partners share profit and loss on the ratio 4:1. Required: 1. Prepare the Statement of Partnership Liquidation. 2. Prepare jounal entries pertinent to the liquidation process.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
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.
Question
Transcribed Image Text:Solving. Solve the following problems and write your answers on a separate piece of pape
PROBLEM 1
Dominador Dizon, Jufel Tamala, and Jonah Dimalanta who share profit and Joss ratio of 2:1:2 decided to liquidate
iheir partnership on December 31, 2020. Their Statement of Financial Position is shown below:
Centerpoint Commercial
Statement of Financial Position
As of December 31, 2020
Assets
Liabilities and Partners' Equity
49,000
20,000
95,000
100,000
106,000
Cash
Non-cash
30,000 Liabilities
340,000 Dizon, Loan
Dizon, Capital
Tamala, Capital
Dimalanta, Capital
Total Liabilities and Partners'
Equity
Totel Assets
P.
370,000
370,000
Assume: Deficient partners are insolvent and absorbed by the solvent partner.
Required: Prepare Statement of Partnership Liquidation in two (2) separate cases and corresponding journal entries in
recording the liquidation process.
a. Non-cash assets were sold for P350,000.
b. Non-cash assets were sold for P200,000.
PROBLEM 2
The partnership of Jay Saberon and Ariane Lopez is going to be dissolved and liquidated. Their liability and capital
account balances are as follows:
Accounts Payable
P 20,000
J. Saberon, Loan
P 5,000
J. Saberon, Capital
P 8,000
A. Lopez, Capital
P 25,000
Their bank pass book shows a deposit under their business name of P3,000 which reconciles with the ledger
balance. All non-cash assets were sold for P40,000. The partners share profit and loss on the ratio 4:1.
Required:
1. Prepare the Statement of Partnership Liquidation.
2. Prepare joumal entries pertinent to the liquidation process.
Transcribed Image Text:EXERCISE 3.2
Graphic Organizer. Write the sequence chart provided below the process of incorporation (include a short description per
step of the process).
Step 1
Step 2
Step 3
Step 4
Step 5
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