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.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Problem 3
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
P45,000
Cash
Accounts Payable
P 62,000
Pozon, Loan
Pozon, Capital
Selisana, Capital
Accounts Receivable
P60,000
5,000
35,000
Est. Uncollectible Accounts
3.000
57,000
70,000
Merchandise
35,000
Teque, Capital
35.000
Total Assets
P 172.000 Total Liabilities & Partners' Equity P172.000
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
20C, 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.
Transcribed Image Text:Problem 3 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 P45,000 Cash Accounts Payable P 62,000 Pozon, Loan Pozon, Capital Selisana, Capital Accounts Receivable P60,000 5,000 35,000 Est. Uncollectible Accounts 3.000 57,000 70,000 Merchandise 35,000 Teque, Capital 35.000 Total Assets P 172.000 Total Liabilities & Partners' Equity P172.000 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 20C, 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.
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