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parthership of Mara, Teri, and Rita has been suffering financial difficulty. financial position of Mara, Teri and Rita on this date is as follows: Partners decided to liquidate. The condensed statement of Mara, Teri and Rita Partnership Statement of Financial Position December 31, 2018 Assets Liabilities and Capital Cash Non-cash Assets P 80,000 Accounts Payable 960,000 Mara, Capital Teri, Capital Rita, Capital P160,000 408,000 352,000 120,000 P1,040,000 P1,040,000 The profit and loss ratio is: Mara, 30%; Teri, 20% and Rita, 50%. Rita has no personal assets other than her interest in the partnership. The non-cash assets were sold for P640,000. Any deficient partner is insolvent, while the others are solvent. Required: (a) Prepare a statement of liquidation. (b) Prepare entries to record the liquidation of the partnership.

parthership of Mara, Teri, and Rita has been suffering financial difficulty. financial position of Mara, Teri and Rita on this date is as follows: Partners decided to liquidate. The condensed statement of Mara, Teri and Rita Partnership Statement of Financial Position December 31, 2018 Assets Liabilities and Capital Cash Non-cash Assets P 80,000 Accounts Payable 960,000 Mara, Capital Teri, Capital Rita, Capital P160,000 408,000 352,000 120,000 P1,040,000 P1,040,000 The profit and loss ratio is: Mara, 30%; Teri, 20% and Rita, 50%. Rita has no personal assets other than her interest in the partnership. The non-cash assets were sold for P640,000. Any deficient partner is insolvent, while the others are solvent. Required: (a) Prepare a statement of liquidation. (b) Prepare entries to record the liquidation of the partnership.

FINANCIAL ACCOUNTING
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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The partnership of Mara, Teri, and Rita has been suffering financial difficulty. financial position of Mara, Teri and Rita on this date is as follows: 1. Partners decided to liquidate. The condensed statement of Mara, Teri and Rita Partnership Statement of Financial Position December 31, 2018 Assets Liabilities and Capital Cash P 80,000 Accounts Payable 960,000 Mara, Capital Teri, Capital Rita, Capital P160,000 408,000 352,000 120,000 P1,040,000 Non-cash Assets P1,040,000 The profit and loss ratio is: Mara, 30%; Teri, 20% and Rita, 50%. Rita has no personal assets other than her interest in the partnership. The non-cash assets were sold for P640,000. Any deficient partner is insolvent, while the others are solvent. Required: (a) Prepare a statement of liquidation. (b) Prepare entries to record the liquidation of the partnership.
Transcribed Image Text:The partnership of Mara, Teri, and Rita has been suffering financial difficulty. financial position of Mara, Teri and Rita on this date is as follows: 1. Partners decided to liquidate. The condensed statement of Mara, Teri and Rita Partnership Statement of Financial Position December 31, 2018 Assets Liabilities and Capital Cash P 80,000 Accounts Payable 960,000 Mara, Capital Teri, Capital Rita, Capital P160,000 408,000 352,000 120,000 P1,040,000 Non-cash Assets P1,040,000 The profit and loss ratio is: Mara, 30%; Teri, 20% and Rita, 50%. Rita has no personal assets other than her interest in the partnership. The non-cash assets were sold for P640,000. Any deficient partner is insolvent, while the others are solvent. Required: (a) Prepare a statement of liquidation. (b) Prepare entries to record the liquidation of the partnership.
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