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Partnership Liquidation Problems

1) The document shows the liquidation of a partnership through multiple journal entries recording the sale of assets, payment of liabilities, and distribution of capital to partners. 2) Non-cash assets were sold, liabilities were paid, and any remaining cash was distributed to partners based on their capital balances. 3) After all transactions, the capital and cash balances for all partners and the partnership were zero, indicating full liquidation.

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Bea Dela Penia
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882 views20 pages

Partnership Liquidation Problems

1) The document shows the liquidation of a partnership through multiple journal entries recording the sale of assets, payment of liabilities, and distribution of capital to partners. 2) Non-cash assets were sold, liabilities were paid, and any remaining cash was distributed to partners based on their capital balances. 3) After all transactions, the capital and cash balances for all partners and the partnership were zero, indicating full liquidation.

Uploaded by

Bea Dela Penia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Cash Non-cash asset Liabilities

Capital balances before liquidation 50,000 2,350,000 400,000


Sale of non-cash assets and distribution of Gain 2,650,000 -2,350,000
Balances 2,700,000 0 400,000
Payment of liabilities -400,000 -400,000
Balances 2,300,000 0 0
Payment to partners -2,300,000
Balances 0 0 0

Journal Entries
Cash 2,650,000
Non-cash asset 2,350,000
Arenas, Capital 100,000
Dulay, Capital 100,000
Laurente, Capital 100,000

Liabilities 400,000
Cash 400,000

Cash 2,300,000
Arenas, Capital 1,000,000
Dulay, Capital 600,000
Laurente, Capital 700,000
Arenas, Capital Dulay, Capital Laurente, Capital
900,000 500,000 600,000
100,000 100,000 100,000
1,000,000 600,000 700,000

1,000,000 600,000 700,000


-1,000,000 -600,000 -700,000
0 0 0
Cash Non-cash asset Liabilities
Capital balances before liquidation 150,000 2,600,000 750,000
Sale of non-cash assets and distribution of Gain 2,150,000 -2,600,000
Balances 2,300,000 0 750,000
Payment of liabilities -750,000 -750,000
Balances 1,550,000 0 0
Payment to partners -1,550,000
Balances 0 0 0

Journal Entries
Cash 2,150,000
Miranda, Capital 150,000
Leon, Capital 150,000
Estoque, Capital 150,000
Non-cash asset 2,600,000

Liabilities 750,000
Cash 750,000

Cash 1,550,000
Arenas, Capital 250,000
Dulay, Capital 450,000
Laurente, Capital 850,000
Miranda, Capital Leon, Capital Estoque, Capital
400,000 600,000 1,000,000
-150,000 -150,000 -150,000
250,000 450,000 850,000

250,000 450,000 850,000


-250,000 -450,000 -850,000
0 0 0
Cash Merchandise Inventory
Capital balances before liquidation 419,170 612,300
Sales of MI & distribution of loss 582,800 -612,300
Balances 1,001,970 0
Sales of other asset & distribution of gain 550,900
Balances 1,552,870 0
Payment of liabilities -131,350
Balances 1,421,520 0
Payment to partners -1,421,520
Balances 0 0

Journal Entries
Cash 582,800
Gulane, Capital 11,800
Tormis, Capital 11,800
Sailadin, Capital 5,900
Merchandise Inventory 612,300

Cash 550,900
Gulane, Capital 31,288
Tormis, Capital 31,288
Sailadin, Capital 15,644
Other Asset 472,680

Accounts Payable 131,350


Cash 131,350

Gulane, Capital 581,088


Tormis, Capital 456,288
Sailadin, Capital 384,144
Cash 1,421,520
Other asset Accounts Payable Gulane, Capital Tormis, Capital Sailadin, Capital
472,680 131,350 561,600 436,800 374,400
-11,800 -11,800 -5,900
472,680 131,350 549,800 425,000 368,500
-472,680 31,288 31,288 15,644
0 131,350 581,088 456,288 384,144
-131,350
0 0 581,088 456,288 384,144
-581,088 -456,288 -384,144
0 0 0 0 0
Cash Non-cash asset Liabilities
Capital balances before liquidation 250,000 450,000 300,000
Sale of non-cash assets and distribution of loss 170,000 -450,000
Balances 420,000 0 300,000
Payment of liabilities -300,000 -300,000
Balances 120,000 0 0
Additional Investment of Mima 10,000
Balances 130,000 0 0
Payment to Partner -130,000
Balances 0 0 0
Mima, Capital Villanueva, Capital
200,000 200,000
-210,000 -70,000
-10,000 130,000

-10,000 130,000
10,000
0 130,000
-130,000
0 0
Cash Non-Cash asset
Capital balances before liquidation 150,000 1,000,000
Sales of non-cash asset & distribution of loss 460,000 -1,000,000
Balances 610,000 0
Payment of liabilities -250,000 0
Balances 360,000 0
Caital defeciency of Acosta is absorbed by partners
Balances 360,000 0
Payment to partners -360,000
Balances 0 0
Accounts Payable Escareal, Capital Acosta, Capital Lopez, Capital
250,000 300,000 210,000 390,000
-180,000 -270,000 -90,000
250,000 120,000 -60,000 300,000
-250,000
0 120,000 -60,000 300,000
0 -40,000 60,000 -20,000
0 80,000 0 280,000
-80,000 0 -280,000
0 0 0 0
Cash Non-cash asset Liabilities
Capital balances before liquidation 1,200,000 150,000
Sale of non-cash assets and distribution of loss 900,000 -1,200,000
Balances 900,000 0 150,000
Payment of liabilities -150,000 -150,000
Balances 750,000 0 0
Payment to Partners -750,000
Balances 0 0 0
Modesto, Capital Corpuz, Capital
600,000 450,000
-200,000 -100,000
400,000 350,000

400,000 350,000
-400,000 -350,000
0 0

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