prepare the statement of liquidationand computation losses equally. Their financial position prior to liquidation follows:Lump-sum LiquidationPartnership is insolvent and partner/s are personally insolvent.Exercise 3.. Victor and Vincent are partners in Valentine partnership. They share profits andValentine PartnershipStatement of Financial PositionAs at August 31, 20xxAssetsLiabilities and CapitalCashP 80,000LiabilitiesP 480,000Vic, CapitalVictor, CapitalVincent, CapitalTotal Liabilities and Capital P 880,000Non-cash Assets800,00040,000120,000240,000Total AssetsP 880,000The personal assets and liabilities of the partners, beside their equities in thepartnership, are as follows:Personal AssetsPersonal LiabilitiesPartnersP300,000P800,000P500,000VicP500,000VictorP140,000VincentP 40,000Solvent partners are going to invest when cash is needed. Non-cash assets are soldfor P425,000, Liabilities in the amount of P480,000 are paid.Required: Prepare the statement of liquidation.

Workings Computation of personal assets realized value Vic PHP Victor PHP Vincent PHP…

Answered: Lump-sum Liquidation Partnership is…

Lump-sum Liquidation Partnership is insolvent and partner/s are personally insolve- nd Vincent are partners in Valentine partnershin ThouI

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter10: Partnerships: Formation, Operation, And Basis

Section: Chapter Questions

Problem 59P

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Question

prepare the statement of liquidation
and computation

losses equally. Their financial position prior to liquidation follows:
Lump-sum Liquidation
Partnership is insolvent and partner/s are personally insolvent.
Exercise 3.
. Victor and Vincent are partners in Valentine partnership. They share profits and
Valentine Partnership
Statement of Financial Position
As at August 31, 20xx
Assets
Liabilities and Capital
Cash
P 80,000
Liabilities
P 480,000
Vic, Capital
Victor, Capital
Vincent, Capital
Total Liabilities and Capital P 880,000
Non-cash Assets
800,000
40,000
120,000
240,000
Total Assets
P 880,000
The personal assets and liabilities of the partners, beside their equities in the
partnership, are as follows:
Personal Assets
Personal Liabilities
Partners
P300,000
P800,000
P500,000
Vic
P500,000
Victor
P140,000
Vincent
P 40,000
Solvent partners are going to invest when cash is needed. Non-cash assets are sold
for P425,000, Liabilities in the amount of P480,000 are paid.
Required: Prepare the statement of liquidation.

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