The partnership of Bartolome Pozon, Jessica Selisana, and Evelyn Teque in the Cebu Convenience Store in which the partners share profit on the ratio of 30%-30%-40% appeared as follows: Sanciangko Commercial Statement of Financial Position As of December 31, 20B P 62,000 5,000 35,000 Cash P45,000 Accounts Payable Pozon, Loan 57,000 Pozon, Capital Accounts Receivable P60,000 Est. Uncollectible Accounts 3.000 Merchandise 35,000 35.000 P 172.000 Total Liabilities & Partners' Equity P172.000 70,000 Selisana, Capital Teque, Capital Total Assets On this date, the partners decided to liquidate their business. In January 20C, P50,000 was collected from the customers' accounts after which the partners have agreed to write-off the balance including the valuation account by charging to their respective capital accounts. The merchandise was realized towards the month-end at 85% of its realizable value. At the end of January 200, the liquidation process is over. Required: 1. Prepare a Statement of Partnership Liquidation 2. Prepare the journal entries needed to complete the entire liquidation process.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is 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, drawings of a partner, etc.
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