On June 30, 2021 – Gold, Titanium and Silver have decided to liquidate their partnership. The shared profits of the partners are in the ratio of 2:2:1, respectively. The partnership's post-closing trial balance is given in the picture.Required:1.Prepare the liquidation journal entries.2. Prepare the statement of liquidation. Gold, Titanium, and SilverPost-Closing Trial BalanceJune 30, 2021P 419,170Merchandise Inventory 612,300472,680CashOther AssetsAccounts PayableGold, CapitalTitanium, CapitalSilver, CapitalP 131,350561,600436,800374,400The merchandise inventory and the other assets were sold for P582,800 and P550,900, respectively.

The question is based on the concept of Financial Accounting.

Answered: On June 30, 2021 – Gold, Titanium and…

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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On June 30, 2021 – Gold, Titanium and Silver have decided to liquidate their partnership. The shared profits of the partners are in the ratio of 2:2:1, respectively. The partnership's post-closing trial balance is given in the picture. Required: 1.Prepare the liquidation journal entries. 2. Prepare the statement of liquidation.

Gold, Titanium, and Silver
Post-Closing Trial Balance
June 30, 2021
P 419,170
Merchandise Inventory 612,300
472,680
Cash
Other Assets
Accounts Payable
Gold, Capital
Titanium, Capital
Silver, Capital
P 131,350
561,600
436,800
374,400
The merchandise inventory and the other assets were sold for P582,800 and P550,900, respectively.

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.

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