prepare the requirements on case 1 D, E and Fare partners in DEF Partnership. A condensed statement of financial position of the company on April 27,2016, the day the partners decide to liquidate the business is presented as follows:DEF PartnershipStatement of Financial PositionApril 26, 2016AssetsCashP 20,000LiabilitiesP 28,000D, LoanD, capital (40%)E, capital (40%)F, capital (20%)2,0009,00021,000Other Assets80,00040,000Total AssetsP100,000Total Liabilities and CapitalP 100,000================ICASE 1: Loss on Realization: Fully Absorbed by Partners' Capital Balances.Assume that the other assets, P80,000, were realized at P60,000 thus resulting to the total loss of P20,000. Hence, thedistribution of cash to the partners does not present any problem.Requirement: a. Prepare the Statement of Liquidation as of April 26,2016.b. Journal entries required to record the liquidation transactions.CASE 2: Loss on Realization Resulting Capital Deficiency to a Partner with Loan Account.Assume that the Other Assets were realized at P55,000 resulting to a loss of P25,000. After the distribution of lossamong the partners using the profit and loss ratio, D's capital account results in a debit balance of P1,000. Tocancel his deficiency, D has to exercise the right of offset by transferring P1,000 from his loan account to his capitalaccount.Requirement: a. Prepare the Statement of Liquidation as of April 26,2016.b. Journal entries required to record the liquidation transactions.CASE 3: Loss on Realization Resulting Capital Deficiency to a Solvent PartnerAssume that the Other Assets were sold for P49,500, thus, resulting to a loss of P30,500 to be divided among thepartners using the profit and loss ratio. After the distribution of loss, D's capital account would result to a debitbalanceof P3,200. Offsetting the entire amount of D's loan account against his capital account still leaves his capital accountwith a debit balance of P1,200. D has to invest additional cash to fully eliminate his deficiency.Requirement: a. Prepare the Statement of Liquidation as of April 26,2016.b. Journal entries required to record the liquidation transactions.

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D, E and F are partners in DEF Partnership. A condensed statement of financial position of the company on April 27, 2016, the day the partners decide to liquidate the business is presented as follows: DEF Partnership Statement of Financial Position April 26, 2016 Assets P 20,000 80,000 P 28,000 2,000 9,000 Cash Liabilities Other Assets D, Loan D, capital (40%) E, capital (40%) F, capital (20%) 21,000 40,000 Total Assets P100,000 Total Liabilities and Capital P 100,000 ======== CASE 1: Loss on Realization: Fully Absorbed by Partners' Capital Balances. Assume that the other assets, P80,000, were realized at P60,000 thus resulting to the total loss of P20,000. Hence, the distribution of cash to the partners does not present any problem. Requirement: a. Prepare the Statement of Liquidation as of April 26,2016. b. Journal entries required to record the liquidation transactions.

D, E and F are partners in DEF Partnership. A condensed statement of financial position of the company on April 27, 2016, the day the partners decide to liquidate the business is presented as follows: DEF Partnership Statement of Financial Position April 26, 2016 Assets P 20,000 80,000 P 28,000 2,000 9,000 Cash Liabilities Other Assets D, Loan D, capital (40%) E, capital (40%) F, capital (20%) 21,000 40,000 Total Assets P100,000 Total Liabilities and Capital P 100,000 ======== CASE 1: Loss on Realization: Fully Absorbed by Partners' Capital Balances. Assume that the other assets, P80,000, were realized at P60,000 thus resulting to the total loss of P20,000. Hence, the distribution of cash to the partners does not present any problem. Requirement: a. Prepare the Statement of Liquidation as of April 26,2016. b. Journal entries required to record the liquidation transactions.

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter12: Accounting For Partnerships And Limited Liability Companies

Section: Chapter Questions

Problem 14E

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