Reference no: EM132644090
Question - The Nice, Rice, and Dice Partnership has not been successful. The partners have determined they must liquidate their partnership. The partners have agreed to liquidate the partnership and anticipate that liquidation expenses will total P 1,000. Prior to the liquidation, the Partnership Statement of Financial Position reflects the following book values:
Cash P18,000
Noncash Assets 51,000
Loans receivable-Nice 3,000
Other Liabilities 20,000
Nice, Capital 6,000
Rice, Capital 30,000
Dice, Capital 16,000
Profits and losses are shared 45% to Nice, 35% to Rice, and 20% to Dice. A review of the individual partner's personal net worth reveals the following:
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Assets
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Liabilities
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|
Nice
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165,000.00
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162,000.00
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Rice
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200,000.00
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110,000.00
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Dice
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185,000.00
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90,000.00
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The following transactions occur:
1. Assets having are sold for P22,000 cash.
2. Other liabilities is composed of P11,000 tax obligation to BIR and P9,000 liability to a friend, who is a lender to the partnership. The partnership paid P11, 000 to BIR and remaining was condoned.
Requirement -
1. Prepare Statement of Liquidation.
2. How much cash should be distributed to each partner after the liquidation?