Lump-Sum Liquidation with Loss on Realization After several years of operations, the partnership of Miranda, Leon and Estoque is to beliquidated. After making the closing entries on March 31, 2019 the following accountsremained open:Account BalanceAccount TitleDebitCreditCashP 150,000Other Assets2,600,000P 750,000LiabilitiesMiranda, CapitalLeon, CapitalEstoque, Capital400,000600,0001,000,000The non-cash assets are sold for P2,150,000. Profits and losses are shared equally.Required:Prepare a statement of partnership liquidation and the entries to record the following:1. Sale of all non-cash assets.2. Distribution of loss on realization to the partners.3. Payment of the liabilities.4. Distribution of cash to the partners.

Liquidation of Partnership: The process of paying off liabilities, selling assets, and…

After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated. After making the closing entries on March 31, 2019 the following accounts remained open: Account Balance Credit Account Title Debit P 150,000 Cash Other Assets Liabilities Miranda, Capital Leon, Capital Estoque, Capital 2,600,000 P 750,000 400,000 600,000 1,000,000 The non-cash assets are sold for P2,150,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities

After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated. After making the closing entries on March 31, 2019 the following accounts remained open: Account Balance Credit Account Title Debit P 150,000 Cash Other Assets Liabilities Miranda, Capital Leon, Capital Estoque, Capital 2,600,000 P 750,000 400,000 600,000 1,000,000 The non-cash assets are sold for P2,150,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities

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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The following information relates to partner for the year ended 29 February 2020: Current account credit balance on 29 February 2020 20 000 Profit share 50 000 Salaries 180 000 Interest on capital 24 000 Drawings 220 000 Interest on drawings 2 000 What is the balance in the Current account of the partner on 01 March 2019? OA. R12 000 DR. B. R116 00O DR OC. R52 000 CR D. R12 000 CR S Type here to search
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