On July 1, 2019, Jun, Mar and Roy decided to liquidate their partnership. Prior to liquidation, the partnership had Cash of P 12,000, Other assets amounting to P 146,000, Liabilities of P 36,000 and a Note Payable to Roy of P 14,000. Profits and losses are shared 30:30:40, respectively. Capital balances of the partners were as follows: Jun- P 36,000 Mar – P 54,000 Roy – P 18,000 During July 2019, the partnership realized P 30,000 from the sale of Other Assets with a book value of P 38,000 and paid P 3,600 for liquidation expenses. During August, the partnership collected P 44,000 from the sale of Other assets having a book value of P 35,000 and paid liquidation expenses of P 8,400. During September, the unsold Other Assets were realized for P 36,000. The partners agreed to distribute cash at the end of each month. Required: 1. Prepare a statement of Liquidation using: a. Schedule of Safe Payments
On July 1, 2019, Jun, Mar and Roy decided to liquidate their partnership. Prior to liquidation, the
partnership had Cash of P 12,000, Other assets amounting to P 146,000, Liabilities of P 36,000
and a Note Payable to Roy of P 14,000.
Capital balances of the partners were as follows:
Jun- P 36,000 Mar – P 54,000 Roy – P 18,000
During July 2019, the partnership realized P 30,000 from the sale of Other Assets with a book
value of P 38,000 and paid P 3,600 for liquidation expenses. During August, the partnership
collected P 44,000 from the sale of Other assets having a book value of P 35,000 and paid
liquidation expenses of P 8,400. During September, the unsold Other Assets were realized for P
36,000. The partners agreed to distribute cash at the end of each month.
Required:
1. Prepare a statement of Liquidation using:
a. Schedule of Safe Payments
b. Cash Priority Program
2. Prepare the necessary
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
