PROBLEM SOLVING: The following balances were taken from the book of TIWALA-LANG Partnership as of July 1, 2018 when the partnership decided to liquidate: P 20,000 60,000 90,000 185,500 10,000 15,500 3,000 122,000 130,000 40,000 35,000 Cash Accounts Receivable Furniture & Fixtures Equipment Accounts Payable Notes Payable Payable, Lang TIng, Capital WAng, Capital LAy-at, Capital Lang, Capital Profit and loss ratio is 2:2:3:3, respectively, Cash is distributed to partners as it becomes available. Non-cash assets were sold for P200,000 during the liquidation process with liquidation cost amounting to P3,000. Assume that TIng and WAng are solvent and LAy-at and LAng are insolvent. REQUIRED: Prepare the following: A. STATEMENT OF LIQUIDATION B. Corresponding JOURNAL ENTRIES
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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