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Required: 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.

Required: 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.

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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Required: 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.
Transcribed Image Text:Required: 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.
Problem #3 Lump-Sum Liquidation Gulane, Tormis, and Sailadin decided to liquidate their partnership on June 30, 2014. The partners shared profits and losses in the ratio of 2:2:1, respectively. The firm's post- closing trial balance follows: Gulane, Tormis, and Sailadin Post-Closing Trial Balance June 30, 2014 Account Name Debit Credit P 419,170 612,300 472,680 Cash Merchandise Inventory Other Assets Accounts Payable Gulane, Capital Tormis, Capital Sailadin, Capital P 131,350 561,600 436,800 374,400 P1,504,150 P1,504,150 The merchandise inventory and the other assets were sold for P582.800 and P550,900 respectively.
Transcribed Image Text:Problem #3 Lump-Sum Liquidation Gulane, Tormis, and Sailadin decided to liquidate their partnership on June 30, 2014. The partners shared profits and losses in the ratio of 2:2:1, respectively. The firm's post- closing trial balance follows: Gulane, Tormis, and Sailadin Post-Closing Trial Balance June 30, 2014 Account Name Debit Credit P 419,170 612,300 472,680 Cash Merchandise Inventory Other Assets Accounts Payable Gulane, Capital Tormis, Capital Sailadin, Capital P 131,350 561,600 436,800 374,400 P1,504,150 P1,504,150 The merchandise inventory and the other assets were sold for P582.800 and P550,900 respectively.
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