Reference no: EM133141631
Question - Wabby, Xian, Yves, and Zoilo share profits and losses in the ratio of 2:3:2:3, respectively. On October 15, 200A, they decided to liquidate their business. Before liquidation, the statement of financial position of the partnership is given below:
ASSETS LIABILITIES AND CAPITAL
Cash Php 30,000 Liabilities Php150,000
Non-cash Assets Ph405,000 Wabby, capital 90,000
Wabby, loan 25,000
Xian, capital 70,000
Yves, capital 50,000
Zoilo, capital 50,000
Total Assets Php 435,000 Total Liabilities and Capital Php 435,000
On October 15, 200A, non-cash assets worth Php255,000 were sold for Php205,000. Liquidation expenses of Php5,000 were paid. Liabilities were paid and available cash except Php10,000 was distributed to the partners.
During the following month, the remaining assets were sold for Php120,000. The available cash was distributed among the partners.
Required -
1. Make and prepare the statement of liquidation together with a supporting schedule of cash distribution.
2. Give entries to record the liquidation of the partnership.