Problem 1Dominador Dizon, Jufel Tamala, and Jonah Dimalanta who share a profit and loss ratio of 2:1:2 decided toliquidate their partnership on December 31, 20B. Their Statement of Financial Position is shown below:Centerpoint CommercialStatement of Financial PositionAs of 31 December 20BLiabilities and Partners' EquityP 49,000AssetsCashP 30,000LiabilitiesDizon, LoanDizon, CapitalTamaia, CapitalDimaianta, CapitalTotal Liabilities & Partners' EquityNon-cash340,00020,00095,000100,000106.000Total AssetsP370.000P370.000Assume: Deficient partners are insolvent and absorbed by the solvent partner.Prepare a Statement of Partnership Liquidation in five (5) separate cases and corresponding journal entries inrecording the nidation process.a) Non-cash assets were sold for P350,000.b) Non-cash assets are sold for P200,000.c) Non-cash assets were sold for P90,000.d) Non-cash assets were sold for P60,000.e) Non-cash assets were sold for P40,000.

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Prepare a Statement of Partnership Liquidation in five (5) separate cases and corresponding journal entries in recording the nidation process. a) Non-cash assets were sold for P350,000. b) Non-cash assets are sold for P200,000. c) Non-cash assets were sold for P90,000. d) Non-cash assets were sold for P60,000. e) Non-cash assets were sold for P40,000.

Prepare a Statement of Partnership Liquidation in five (5) separate cases and corresponding journal entries in recording the nidation process. a) Non-cash assets were sold for P350,000. b) Non-cash assets are sold for P200,000. c) Non-cash assets were sold for P90,000. d) Non-cash assets were sold for P60,000. e) Non-cash assets were sold for P40,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.

Question

Problem 1
Dominador Dizon, Jufel Tamala, and Jonah Dimalanta who share a profit and loss ratio of 2:1:2 decided to
liquidate their partnership on December 31, 20B. Their Statement of Financial Position is shown below:
Centerpoint Commercial
Statement of Financial Position
As of 31 December 20B
Liabilities and Partners' Equity
P 49,000
Assets
Cash
P 30,000
Liabilities
Dizon, Loan
Dizon, Capital
Tamaia, Capital
Dimaianta, Capital
Total Liabilities & Partners' Equity
Non-cash
340,000
20,000
95,000
100,000
106.000
Total Assets
P370.000
P370.000
Assume: Deficient partners are insolvent and absorbed by the solvent partner.
Prepare a Statement of Partnership Liquidation in five (5) separate cases and corresponding journal entries in
recording the nidation process.
a) Non-cash assets were sold for P350,000.
b) Non-cash assets are sold for P200,000.
c) Non-cash assets were sold for P90,000.
d) Non-cash assets were sold for P60,000.
e) Non-cash assets were sold for P40,000.

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Step 2: Requirement a- Preparation of Statement of Partnership Liquidation:

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Step 3: Requirement b- Preparing a Statement of Partnership Liquidation:

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Step 4: Requirement c- Presenting a Statement of Partnership Liquidation:

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