rship Liquid
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Prepare a statement of Partnership Liquidation
Transcribed Image Text:Partners I, J and K share profits and losses equally. On March 31, 2020, the partners voted
to liquidate the partnership when its assets, liabilities, and capital were as follows:
77.000
60,500
Cash
Liabilities
440,000
Note receivable from K
Loans:
Other noncash assets
660,000
22,000
88,000
Capital
82,500
82,500
82,500
797,500
J
K
797,500
Assume the following:
a) All the noncash assets of P660,000 were sold for P297,000
b) K instructed the partnership to write off the P60,500 he borrowed from the
partnership
c) All partners could eliminate any deficits in their capital accounts through offset or
contribution, or both
d) All cash was distributed to outside creditors and partners
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