Required:Prepare a statement of partnership liquidation and the entries to record the following:1. Sale of all non-cash assets.2. Distribution of gain on realization to the partners.3. Payment of the liabilities.4. Distribution of cash to the partners. Problem #3Lump-Sum LiquidationGulane, Tormis, and Sailadin decided to liquidate their partnership on June 30, 2014.The partners shared profits and losses in the ratio of 2:2:1, respectively. The firm's post-closing trial balance follows:Gulane, Tormis, and SailadinPost-Closing Trial BalanceJune 30, 2014Account NameDebitCreditP 419,170612,300472,680CashMerchandise InventoryOther AssetsAccounts PayableGulane, CapitalTormis, CapitalSailadin, CapitalP 131,350561,600436,800374,400P1,504,150P1,504,150The merchandise inventory and the other assets were sold for P582.800 and P550,900respectively.

Statement of liquidation is the statement by the partnership firm at the time of winding up of the…

Required: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of gain on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.

Required: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of gain on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners.

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 22E

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