On December 1, 2021 – Apple, Banana, and Lemon decided to finally liquidate their partnership. (Statement of financial position/Balance sheet is given in the picture)Required:1. Prepare the liquidation journal entries.2. Prepare the statement of liquidation. ABL PartnershipStatement of Financial PositionDec 01, 2020AssetsP 25,00075,000100,000300,000P 500,000CashAccounts Receivable (net)InventoriesProperty and Equipment (net)Total AssetsLiabilities and CapitalAccounts PayableLoan Payable-BananaApple, CapitalBanana, CapitalLemon, CapitalTotal Liabilities and CapitalP240,00030,000120,00050,00060.000P500,000Additional information:a) The personal assets (excluding partnership capital and loan interests) and personal liabilities of each partneras of Dec. 1, 2021, are presented below:AppleBananaLemonPersonal assetsP250,000 P300,000 P350,000Personal liabilities (230,000) | (240,000) | (325,000)Personal net worth P 20,000 | P60,000 || P 25,000b) Apple, Banana, and Lemon share profits and losses in the ratio 20:40:40, respectively.c) In the partnership agreement, interest will not accrue on partners' loan balances during the liquidation process.d) All of the non-cash assets were sold on Dec. 10, 2021 for P260,000.

PSR :-20:40:40 Remaining cash after paying liabilties will paid to partners.

Statement of Financial Position Dec 01, 2020 Assets P 25,000 75,000 100,000 300,000 P 500,000 Cash Accounts Receivable (net) Inventories Property and Equipment (net) Total Assets Liabilities and Capital Accounts Payable Loan Payable-Banana Apple, Capital Banana, Capital Lemon, Capital Total Liabilities and Capital P240,000 30,000 120,000 50,000 60.000 P500,000 mation: OThe personal assets (excluding partnership capital and loan interests) and personal liabilities of ea as of Dec. 1, 2021, are presented below: Banana P250,000 P300,000 P350,000 Apple Lemon Personal assets Personal liabilities (230,000) (240,000) (325,000) Personal net worth P 20,000 | P60,000 | P 25,000 OApple, Banana, and Lemon share profits and losses in the ratio 20:40:40, respectively. In the partnership agreement, interest will not accrue on partners' loan balances during the liquidatio

Statement of Financial Position Dec 01, 2020 Assets P 25,000 75,000 100,000 300,000 P 500,000 Cash Accounts Receivable (net) Inventories Property and Equipment (net) Total Assets Liabilities and Capital Accounts Payable Loan Payable-Banana Apple, Capital Banana, Capital Lemon, Capital Total Liabilities and Capital P240,000 30,000 120,000 50,000 60.000 P500,000 mation: OThe personal assets (excluding partnership capital and loan interests) and personal liabilities of ea as of Dec. 1, 2021, are presented below: Banana P250,000 P300,000 P350,000 Apple Lemon Personal assets Personal liabilities (230,000) (240,000) (325,000) Personal net worth P 20,000 | P60,000 | P 25,000 OApple, Banana, and Lemon share profits and losses in the ratio 20:40:40, respectively. In the partnership agreement, interest will not accrue on partners' loan balances during the liquidatio

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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