Reference no: EM131819548
How would do a statement of liquidation for this?
Miss, Mister, and Master have capital balances of 300,00php , 200,00php, 300,00php respectively. There is a cash balances and liabilities- Accounts Payable of 800,00 including a loan due Mister of 40,000. Partner's right over profit or loss is based on capital ratio.
Personal assets and ( liabilities ) are : Miss 60,000 ( 40,00 ); Mister 70,000 ( 75,000 ); and Master 80,00 ( 180,000 )
Liquidation process: a.) sale of non cash assets for 700,00 b.) payment of accounts payable c.) deficiency of Master absorbed by the other partners d.) right of offset is applied e.) additional investment of deficient but solvent partner and f.) distribution of remaining cash to appropriate partners.
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