Problem #112. Prepare the journal entries to account for the liquidation.1. Prepare a statement of liquidation.Lump-Sum LiquidationOrian, Tejero, and Lacson are partners in the OTL Electric Company and share profits inratio of 5:3:2. On June 30, 2014, they decided to liquidate the business. The statementof financial position at that date is as follows:CashP 20,00015,000135,000P 30,00010,00080,00036,000LiabilitiesOrian, LoanNon-cash AssetsTejero, LoanOrian, CapitalTejero, CapitalLacson, CapitalTotal Equities14,000P170,000Total AssetsP170,000The non-cash assets are sold for P95,000. Rather than require payments, all partnersagreed to offset the receivable from Orian against his capital credit.Required:1. Prepare a statement of liquidation.. Prepare the journal entries to account for the liquidation.

Statement of liquidation presents the manner in which, assets are realized, liabilities are settled,…

Orian, Tejero, and Lacson are partners in the OTL Electric Company and share profits in ratio of 5:3:2. On June 30, 2014, they decided to liquidate the business. The statement of financial position at that date is as follows: P 20,000 15,000 135,000 Cash Liabilities P 30,000 Orian, Loan Non-cash Assets Tejero, Loan Orian, Capital Tejero, Capital Lacson, Capital Total Equities 10,000 80,000 36,000 14,000 P170,000 Total Assets · P170,000 The non-cash assets are sold for P95,000. Rather than require payments, all partners agreed to offset the receivable from Orian against his capital credit. Required: 1. Prepare a statement of liquidation. 2. Prepare the journal entries to account for the liquidation.

Orian, Tejero, and Lacson are partners in the OTL Electric Company and share profits in ratio of 5:3:2. On June 30, 2014, they decided to liquidate the business. The statement of financial position at that date is as follows: P 20,000 15,000 135,000 Cash Liabilities P 30,000 Orian, Loan Non-cash Assets Tejero, Loan Orian, Capital Tejero, Capital Lacson, Capital Total Equities 10,000 80,000 36,000 14,000 P170,000 Total Assets · P170,000 The non-cash assets are sold for P95,000. Rather than require payments, all partners agreed to offset the receivable from Orian against his capital credit. Required: 1. Prepare a statement of liquidation. 2. Prepare the journal entries to account for the liquidation.

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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