Can someone make the “statement of liquidation?”
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 4BCRQ
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Question
Can someone make the “statement of liquidation?”
Transcribed Image Text:Shadow, Ego and Self have decided to liquidate their partnership
on December 1,2021. The statement of financial position is
shown below:
JUNGIAN Partnership
Statement of Financial Position
As of Dec. 1,2021
Assets
Cash
IP
25,000.00
|Accounts receivable, net
Inventories
Property, plant & equipment, net
Total Assets
75,000.00
100,000.00
300,000.00
500,000.00
Liabilities and Capital
Liabilities
Accounts payable
Loan payable-Ego
Total liabilities
IP
240,000.00
30,000.00
IP
270,000.00
Capital
Shadow, Capital P 120,000.00
Ego, Capital
Self, Capital
Total Capital
Total Liabilities and capital
50,000.00
P 60,000.00
230,000.00
500,000.00
Additional information:
A. The personal assets (excluding partnership capital and loan
interests) and personal liabilities of each partner as of Dec.
1,2021, are presented below:
Shadow
Ego
Self-
Personal assets
250,000 254,000 350,000
Personal liabilities
(230,000) (240,000) (375,000)
Personal net worth
20,000
14,000 (25,000)
B. Shadow, Ego, and Self share profit and losses in the ratio of
20:40:40, respectively
C. All of the non-cash assets were sold on December 10,2021
for P240,000.
OLLEG
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