The partnership accounts of Guess, Jag and Levis are shown below as of December 31, 2019. Profits and losses are shared 50%; 30%; and 20%, respectively. Guess, Drawing (debit balance) P (32,000) Levis, Drawing (debit balance) (12,000) Jag, Loan 40,000 Guess, Capital 164,000 Jag, Capital 134,000 Levis, Capital 144,000 Total assets amounted to P 638,000, including cash of P 70,000, and P 200,000 worth of liabilities. On January 2019, the partnership was liquidated, and Jag received P 111,000 cash as final settlement. Required: 1. The total loss from the liquidation of the partnership 2. Prepare the statement of liquidation. 3. Journal entries to record the liquidation.
The partnership accounts of Guess, Jag and Levis are shown below as of December 31, 2019. Profits and losses are shared 50%; 30%; and 20%, respectively. Guess, Drawing (debit balance) P (32,000) Levis, Drawing (debit balance) (12,000) Jag, Loan 40,000 Guess, Capital 164,000 Jag, Capital 134,000 Levis, Capital 144,000 Total assets amounted to P 638,000, including cash of P 70,000, and P 200,000 worth of liabilities. On January 2019, the partnership was liquidated, and Jag received P 111,000 cash as final settlement. Required: 1. The total loss from the liquidation of the partnership 2. Prepare the statement of liquidation. 3. Journal entries to record the liquidation.
The partnership accounts of Guess, Jag and Levis are shown below as of December 31, 2019. Profits and losses are shared 50%; 30%; and 20%, respectively. Guess, Drawing (debit balance) P (32,000) Levis, Drawing (debit balance) (12,000) Jag, Loan 40,000 Guess, Capital 164,000 Jag, Capital 134,000 Levis, Capital 144,000 Total assets amounted to P 638,000, including cash of P 70,000, and P 200,000 worth of liabilities. On January 2019, the partnership was liquidated, and Jag received P 111,000 cash as final settlement. Required: 1. The total loss from the liquidation of the partnership 2. Prepare the statement of liquidation. 3. Journal entries to record the liquidation.
The partnership accounts of Guess, Jag and Levis are shown below as of December 31, 2019. Profits and losses are shared 50%; 30%; and 20%, respectively.
Guess, Drawing (debit balance)
P (32,000)
Levis, Drawing (debit balance)
(12,000)
Jag, Loan
40,000
Guess, Capital
164,000
Jag, Capital
134,000
Levis, Capital
144,000
Total assets amounted to P 638,000, including cash of P 70,000, and P 200,000 worth of liabilities. On January 2019, the partnership was liquidated, and Jag received P 111,000 cash as final settlement.
Required:
1.
The total loss from the liquidation of the partnership
2.
Prepare the statement of liquidation.
3.
Journal entries to record the liquidation.
Transcribed Image Text:C.
The partnership accounts of Guess, Jag and Levis, are shown below as of December 31,
2019. Profits and losses are shared 50%; 30%; and 20%, respectively.
Guess, Drawing (debit balance)
Levis. Drawing (debit balance)
Jag, Loan
Guess, Capital
Jag, Capital
Levis. Capital
P (32,000)
(12,000)
40,000
164,000
134,000
144,000
ACCO 20043 Financial Accounting and Reporting Part 2
18
Total assets amounted to P 638,000, including cash of P 70,000, and P 200,000 worth of liabilities.
On January 2019, the partnership was liquidated, and Jag received P 111,000 cash as final
settlement.
Required:
1.
2.
3.
The total loss from the liquidation of the partnership
Prepare the statement of liquidation.
Journal entries to record the liquidation.
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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