Required Thetotalloss from the liquidation of the partnership Prepare the staternent ofliquidation. Journal entries to recordthe liquidation. 3. 123
Required Thetotalloss from the liquidation of the partnership Prepare the staternent ofliquidation. Journal entries to recordthe liquidation. 3. 123
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
Related questions
Question
Transcribed Image Text:C.
The partnership accounts of Guess, Jag and Levis are shown below as of December 31, 2019,
Profits and lossesare shared50%; 30%; and 20%, respectively.
Levis, Drawing (debit balance)
Jag Loan
Guess, Capital
Jag Capital
Levis, Capital
P (32,000)
(12,000)
40,000
164,000
134,000
144,000
Total assets amounted to P638,000, including cash of P 70,000, andP 200,000 worth of liabilities. On
January 2019, the partnershipwasliquidated, and Jag received P111,000 cash as final settlement.
14
Required.
The totalloss from the liquidation of the partnership
Preparethe statement of liquidation.
Journal entriesto recordthe liquidation.
3.
123
Transcribed Image Text:Red, White, and Blue are partners who share profits and losses 20%; 30%; and 50%
respectively. The partners have decided to liquidate the partnership. Their capital
accounts show the following balances: Red - P 60,000 credit; White - P 90,000 credit;
Blue - P 30,000 debit. What is the amount of cash available for distribution?
D.
Orange and Lemon share profits and losses equally. They decided to liquidate their
partnership when their net assets amounted to P 260,000. Capital balances were
170,000 and P 90,000, respectively. If the non-cash assets were sold for an amount
equal to book value, what amount of cash should Orange and Lemon respectively
received?
E.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College