Problem #11 Lump-Sum Liquidation Aparece, Bantilles and Lerin have decided to liquidate their partnership on Dec. 1, 2019. The statement of financial position is shown below: ABL Partnership Statement of Financial Position Dec. 1, 2019 Assets Cash P 25,000 Accounts Receivable (net) 75,000 Inventories 100,000 300,000 Property and Equipment (net) Total Assets P500,000 Liabilities and Capital Liabilities Accounts Payable Loan Payable-Bantilles P240,000 30,000 Total Liabilities P270,000 Capital: Aparece, Capital Bantilles, Capital Lerin, Capital Total Capital Total Liabilities and Capital P120,000 50,000 60,000 230,000 P500,000 Additional information: a. The personal assets (excluding partnership capital and loan interests) and personal liabilities of each partner as of Dec. 1, 2019, are presented below: Aparece Bantilles Lerin Personal assets P250,000 (230,000) P300,000 P350,000 Personal liabilities (240,000) (325,000) Personal net worth P 20,000 P 60,000 P 25,000 D. Aparece, Bantilles, and Lerin share profits and losses in the ratio 20:40:40, respectively. C. According to the partnership agreement, interest will not accrue on partners' loan balances during the liquidation process. d. All of the non-cash assets were sold on Dec. 10, 2019 for P260,000. Required: Prepare a statement of liquidation.
Problem #11 Lump-Sum Liquidation Aparece, Bantilles and Lerin have decided to liquidate their partnership on Dec. 1, 2019. The statement of financial position is shown below: ABL Partnership Statement of Financial Position Dec. 1, 2019 Assets Cash P 25,000 Accounts Receivable (net) 75,000 Inventories 100,000 300,000 Property and Equipment (net) Total Assets P500,000 Liabilities and Capital Liabilities Accounts Payable Loan Payable-Bantilles P240,000 30,000 Total Liabilities P270,000 Capital: Aparece, Capital Bantilles, Capital Lerin, Capital Total Capital Total Liabilities and Capital P120,000 50,000 60,000 230,000 P500,000 Additional information: a. The personal assets (excluding partnership capital and loan interests) and personal liabilities of each partner as of Dec. 1, 2019, are presented below: Aparece Bantilles Lerin Personal assets P250,000 (230,000) P300,000 P350,000 Personal liabilities (240,000) (325,000) Personal net worth P 20,000 P 60,000 P 25,000 D. Aparece, Bantilles, and Lerin share profits and losses in the ratio 20:40:40, respectively. C. According to the partnership agreement, interest will not accrue on partners' loan balances during the liquidation process. d. All of the non-cash assets were sold on Dec. 10, 2019 for P260,000. Required: Prepare a statement of liquidation.
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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Transcribed Image Text:Problem #11
Lump-Sum Liquidation
Aparece, Bantilles and Lerin have decided to liquidate their partnership on Dec. 1, 2019.
The statement of financial position is shown below:
ABL Partnership
Statement of Financial Position
Dec. 1, 2019
Assets
P 25,000
75,000
100,000
300,000
P500,000
Cash
Accounts Receivable (net)
Inventories
Property and Equipment (net)
Total Assets
Liabilities and Capital
Liabilities
Accounts Payable
P240,000
Loan Payable-Bantilles
30,000
Total Liabilities
P270,000
Capital:
Aparece, Capital
Bantilles, Capital
Lerin, Capital
Total Capital
Total Liabilities and Capital
P120,000
50,000
60,000
230,000
P500,000
Additional information:
a. The personal assets (excluding partnership capital and loan interests) and personal
liabilities of each partner as of Dec. 1, 2019, are presented below:
Aparece
Bantilles
Lerin
Personal assets
P250,000
P300,000
P350,000
Personal liabilities
(230,000)
(240,000)
(325,000)
Personal net worth
P 20,000
P 60,000
P 25,000
D. Aparece, Bantilles, and Lerin share profits and losses in the ratio 20:40:40,
respectively.
C. According to the partnership agreement, interest will not accrue on partners' loan
balances during the liquidation process.
a. All of the non-cash assets were sold on Dec. 10, 2019 for P260,000.
Required:
Prepare a statement of liquidation.
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