The following are the account balances as of June 30, 2022 of JPP Partnership just before liquidation:Cash - 100000Inventory - 600000Furniture - 200000Equipment - 400000Accounts Payable - 200000Loans from Pedro - 200000Juan, capital - 20% - 300000Pedro, capital -35% - 310000Pablo, capital - 45% - 280000The following events occurred thereafter:Jul 1 - Equipment was sold for P380,000Jul 15 - Furniture was sold for P 210,000Jul 30 - Inventory with book value of P500,000 was sold for P200,000Aug 15 - Remaining inventory was sold for P 80,000a. Prepare a liquidation report.b. Prepare a cash distribution report/computation for safe payment for each time the partnership will be paying off the partners.c. Prepare a cash priority program and show how it can be used to settle the partner’s equity balances.d. Indicate on the space provided the total cash each partner would receive. Problem SolvingRead the given information and solve for what is asked. Encode your answer on the spaces below and upload yoursolutions on the provided section.18. The following are the account balances as of June 30, 2022 of JPP Partnership just beforeliquidation:Cash - 100000Inventory - 600000Furniture - 200000Equipment - 400000Accounts Payable - 200000Loans from Pedro - 200000Juan, capital - 20% - 300000Pedro, capital -35% - 310000Pablo, capital - 45% - 280000The following events occurred thereafter:Jul 1 - Equipment was sold for P380,000Jul 15 - Furniture was sold for P 210,000Jul 30 - Inventory with book value of P500,000 was sold for P200,000Aug 15 - Remaining inventory was sold for P 80,000 a. Prepare a liquidation report.b. Prepare a cash distribution report/computation for safe payment for each time thepartnership will be paying off the partners.c. Prepare a cash priority program and show how it can be used to settle the partner's equitybalances.d. Indicate on the space provided the total cash each partner would receive.

Liquidation of Partnership is ending the partnership agreement among themselves and closing the…

Answered: The following are the account balances…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The following are the account balances as of June 30, 2022 of JPP Partnership just before liquidation:

Cash - 100000
Inventory - 600000
Furniture - 200000
Equipment - 400000
Accounts Payable - 200000
Loans from Pedro - 200000
Juan, capital - 20% - 300000
Pedro, capital -35% - 310000
Pablo, capital - 45% - 280000

The following events occurred thereafter:
Jul 1 - Equipment was sold for P380,000
Jul 15 - Furniture was sold for P 210,000
Jul 30 - Inventory with book value of P500,000 was sold for P200,000
Aug 15 - Remaining inventory was sold for P 80,000

a. Prepare a liquidation report.
b. Prepare a cash distribution report/computation for safe payment for each time the partnership will be paying off the partners.
c. Prepare a cash priority program and show how it can be used to settle the partner’s equity balances.
d. Indicate on the space provided the total cash each partner would receive.

Problem Solving
Read the given information and solve for what is asked. Encode your answer on the spaces below and upload your
solutions on the provided section.
18. The following are the account balances as of June 30, 2022 of JPP Partnership just before
liquidation:
Cash - 100000
Inventory - 600000
Furniture - 200000
Equipment - 400000
Accounts Payable - 200000
Loans from Pedro - 200000
Juan, capital - 20% - 300000
Pedro, capital -35% - 310000
Pablo, capital - 45% - 280000
The following events occurred thereafter:
Jul 1 - Equipment was sold for P380,000
Jul 15 - Furniture was sold for P 210,000
Jul 30 - Inventory with book value of P500,000 was sold for P200,000
Aug 15 - Remaining inventory was sold for P 80,000

a. Prepare a liquidation report.
b. Prepare a cash distribution report/computation for safe payment for each time the
partnership will be paying off the partners.
c. Prepare a cash priority program and show how it can be used to settle the partner's equity
balances.
d. Indicate on the space provided the total cash each partner would receive.

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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