Make a statement of liquidation and journal entries

Assignment Help Financial Accounting

Reference no: EM132832967

Question - The following statement of financial position is prepared for XYZ Partnership on June 30, 2019, just before the partners decided to liquidate their business. Partners X, Y and Z share profits and losses in the ratio of 5:3:2, respectively.

XYZ Partnership Statement of Financial Position As of June 30, 2019

Cash P80,000

Accounts Receivable P 60,000

Allowance for Doubtful Accounts (22,000) 38,000

Equipment 400,000

Accumulated Depreciation (138,000 262,000

Total Assets P 380,000

Accounts Payable P 100,000

Y, Loan 20,000

X, Capital 80,000

Y, Capital 100,000

Z, Capital 80,000

Total Liabilities and Capital P 380,000

Required - Under each of the following assumptions, make a statement of liquidation and journal entries to record the liquidation of the partnership. Kindly put a explanation in every statement so I can understand well.

1. Cash realized from the sale of the non-cash assets amounted to P400,000.

2. Cash realized from the sale of the non-cash assets amounted to P200,000.

3. Cash realized from the sale of the non-cash assets amounted to P120,000 and all partners are personally solvent.

4. Cash realized from the sale of the non-cash assets amounted to P120,000 and all partners are personally insolvent.

5. Cash realized from the sale of the non-cash assets amounted to P40,000. Partner X is personally insolvent while Partners Y and Z are personally solvent.

Reference no: EM132832967

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