Prepare a Statement of Partnership Liquidation and the entries to record the following:1. Sale of all non-cash assets2. Distribution of gain on realization to the partners3. Payment of the liabilities4. Distribution of cash to the partners After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After makingthe closing entries on June 30, 2018, the following accounts remained open:Account TitleDebitCreditCashP50,000Non-cash Assets2,350,000LiabilitiesP400,000Arenas, Capital900,000Dulay, Capital500,000Laurente, Capital600,000The non-cash assets are sold for P2,650,000. Profits and losses are shared equally.Prepare a Statement of Partnership Liquidation and the entries to record the following:1. Sale of all non-cash assets2. Distribution of gain on realization to the partners3. Payment of the liabilities4. Distribution of cash to the partners

Partnership liquidation Statement: It is a statement showing the closure of capital A/Cs of partners…

Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of all non-cash assets 2. Distribution of gain on realization to the partners 3. Payment of the liabilities 4. Distribution of cash to the partners

Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of all non-cash assets 2. Distribution of gain on realization to the partners 3. Payment of the liabilities 4. Distribution of cash to the partners

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter23: Accounting For Partnerships

Section: Chapter Questions

Problem 3AP

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Prepare a Statement of Partnership Liquidation and the entries to record the following:
1. Sale of all non-cash assets
2. Distribution of gain on realization to the partners
3. Payment of the liabilities
4. Distribution of cash to the partners

After several years of operations, the partnership of Arenas, Dulay and Laurente is to be liquidated. After making
the closing entries on June 30, 2018, the following accounts remained open:
Account Title
Debit
Credit
Cash
P
50,000
Non-cash Assets
2,350,000
Liabilities
P
400,000
Arenas, Capital
900,000
Dulay, Capital
500,000
Laurente, Capital
600,000
The non-cash assets are sold for P2,650,000. Profits and losses are shared equally.
Prepare a Statement of Partnership Liquidation and the entries to record the following:
1. Sale of all non-cash assets
2. Distribution of gain on realization to the partners
3. Payment of the liabilities
4. Distribution of cash to the partners

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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