Required: 1. Prepare a Statement of Partnership Liquidatfion 2. Prepare thejournal entries torecordthe liquidation of the partnership
Required: 1. Prepare a Statement of Partnership Liquidatfion 2. Prepare thejournal entries torecordthe liquidation of the partnership
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 42P
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Transcribed Image Text:CASE 3
Partners), Jand K share profits and loses equally. On March 31, 2020, the
partners voted toliquidate the partnership when itsassets, liabilities, andcapital
were as follows:
Cash
77.000
Liabilities
440,000
Note receivable from K 60,500
Loans:
Other noncash assets 660,000
22,000
88,000
Capital
82,500
82,500
K
82,500
797,500
797,500
Assume the following:
a) All the noncash assetsof P660,000 were sold for P297,000
b) Kinstructedthe partneship to wite off the P60,500 he borrowed from the
Rartnership
c) All partnerscoud eliminate any deficits in ther capital accounts through
offset or contribution, or both
d) All cash was distributed to outside creditors and partners
Required:
1. Prepare a Statement of Partnership Liquidation
2. Prepare thejournal entries torecordthe liquidation of the partnership
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