Problem #13Preparation of Journal Entries for Partnership LiquidationTugade, Masinsin and Biore are all famous athletes who have been operating a sportsmemorabilia store for many years. The partnership decided to liquidate its operationrather than sell the business because they are each about to retire and want to go theirseparate ways. They have been sharing profits in the ratio of 40% to Tugade, 40% to.Masinsin, and 20% to Biore. The trial balance for their business on Jan. 1, 2016 follows:Trial BalančeJanuary 1, 2016CashP 42,000Accounts Receivable189,600P 11,100Allowance for Uncollectible AccountsMerchandise InventoryPrepaid Insurance293,1009,000120,000LandOffice Equipment31,500Accu. Depreciation-Office EquipmentMachineryAccu. Depreciation-MachineryBuilding10,50081,60032,100375,000Accu. Depreciation-BuildingNotes PayableAccounts Payable112,500120,000220,500Mortgage PayableTugade, CapitalMasinsin, CapitalBiore, CapitalTotals240,000135,00060,000200,100P1,141,800P1,141,800January 2016, the events took place during the process of liquidating the partnership:Jan. 6Accounts receivable of P151,500 are collected, and the allowance for uncollectibleaccounts is written off the books.Merchandise inventory is sold for P160,500.A refund on the prepaid insurance is expected totaling P3,000.Property and equipment were sold lump sum to Sibug Company for P111,000. Themortgage on the building was also transferred to Sibug.The remaining creditors were paid in full.The deficit in Masinsin's capital account was absorbed by Tugade and Biore.The deficit in Tugade's capital account was absorbed by Biore.The remaining partnership cash is distributed to Biore.111420202024uired: Prepare the journal entries to record the transactions. Allocate any gain oron realization to the partners' capital accounts at the time of the transaction. It isssumed that any partner with a capital deficiency is insolvent and will not be able toribute any personal assets to cover it.

Problem 13 solution : Profit sharing ratio of Tugade , Masinsin and Biore = 40%, 40% and 20%…

sinsin and Biore are all famous athletes who have been operatin store for many years. The partnership decided to liquidate its sell the business because they are each about to retire and want ys. They have been sharing profits in the ratio of 40% to Tuga d 20% to Biore. The trial balance for their business on Jan. 1, 201 Trial Balance January 1, 2016 P 42,000 hts Receivable 189,600 nce for Uncollectible Accounts P 11,10 andise Inventory d Insurance 293,100 9,000 120,000 Equipment Depreciation-Office Equipment mery Depreciation-Machinery 31,500 10,50 81,600 32,10 375,000 Depreciation-Building Payable 112,50 120.00

sinsin and Biore are all famous athletes who have been operatin store for many years. The partnership decided to liquidate its sell the business because they are each about to retire and want ys. They have been sharing profits in the ratio of 40% to Tuga d 20% to Biore. The trial balance for their business on Jan. 1, 201 Trial Balance January 1, 2016 P 42,000 hts Receivable 189,600 nce for Uncollectible Accounts P 11,10 andise Inventory d Insurance 293,100 9,000 120,000 Equipment Depreciation-Office Equipment mery Depreciation-Machinery 31,500 10,50 81,600 32,10 375,000 Depreciation-Building Payable 112,50 120.00

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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REVISED IMAGES ATTACHED Why are highlighted items Incorrect? Which Account should be used along with the correct debit or credit amount.
A partner had a debit balance on his current account of $1600 on 1 January 2009. On 31 December 2009 the following amounts were entered in the partner’s current account: interest on capital $500 share of profit $4000 What was the balance on the partner’s current account on 1 January 2010? A credit $1900 B credit $2900 C debit $5100 D debit $6100
Post entries to the ledger
None
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