PROBLEM 2 The partnership of Jay Saberon and Ariane Lopez is going to be dissolved and liquidated. Their liability and capital account balances are as follows: Accounts Payable P 20,000 J. Saberon, Loan P 5,000 J. Saberon, Capital P 8,000 A. Lopez, Capital P 25,000 Their bank pass book shows a deposit under their business name of P3,000 which reconciles with the ledger balance. All non-cash assets were sold for P40,000. The partners share profit and loss on the ratio 4:1. Required: 1. Prepare the Statement of Partnership Liquidation. 2. Prepare joumal entries pertinent to the liquidation process.

PROBLEM 2 The partnership of Jay Saberon and Ariane Lopez is going to be dissolved and liquidated. Their liability and capital account balances are as follows: Accounts Payable P 20,000 J. Saberon, Loan P 5,000 J. Saberon, Capital P 8,000 A. Lopez, Capital P 25,000 Their bank pass book shows a deposit under their business name of P3,000 which reconciles with the ledger balance. All non-cash assets were sold for P40,000. The partners share profit and loss on the ratio 4:1. Required: 1. Prepare the Statement of Partnership Liquidation. 2. Prepare joumal entries pertinent to the liquidation process.

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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