5.3 Barbara and Streisand are partners sharing profits and losses in the ratio of 55% and 45%. Barbara’s capital investment is P 18,000 and Streisand’s is P 14,000. It is decided by the partners that the business should be terminated. The firm has liabilities of P 28,800. Barbara has a loan to the firm in the amount of P 3,600 while Streisand’s loan is P 2,400. After realization, the cash on hand amounts to P 30,000. Any deficient partner is insolvent. REQUIRED: Working paper for the Statement of Liquidation and journal entries

5.3 Barbara and Streisand are partners sharing profits and losses in the ratio of 55% and 45%. Barbara’s capital investment is P 18,000 and Streisand’s is P 14,000. It is decided by the partners that the business should be terminated. The firm has liabilities of P 28,800. Barbara has a loan to the firm in the amount of P 3,600 while Streisand’s loan is P 2,400. After realization, the cash on hand amounts to P 30,000. Any deficient partner is insolvent. REQUIRED: Working paper for the Statement of Liquidation and journal entries

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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5.3 Barbara and Streisand are partners sharing profits and losses in the ratio of 55% and 45%. Barbara’s capital investment is P 18,000and Streisand’s is P 14,000. It is decided by the partners that thebusiness should be terminated. The firm has liabilities of P 28,800.Barbara has a loan to the firm in the amount of P 3,600 whileStreisand’s loan is P 2,400. After realization, the cash on handamounts to P 30,000. Any deficient partner is insolvent.REQUIRED: Working paper for the Statement of Liquidation and journal entries. t partner is insolvent. REQUIRED: Working paper for the Statement of Liquidation and journal entries.
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