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Question - Tito, Vic and Joey, who share profits and losses in the ratio of 40%, 40% and 20%, respectively, decided to liquidate their partnership on January 31, 2022. Prior to the partnership's liquidation, their condensed Statement of Financial Position shows the following account balances:
Cash
P12,800
Liabilities
P71,680
Other assets
217,600
Vic, Loan
3,200
Joey, Loan
5,120
Tito, Capital
60,800
Vic, Capital
38,400
Joey, Capital
51,200
TOTAL
P230,400
Case: The Other Assets were sold for P108,800. Deficient partner was insolvent.
Required - For each case, prepare all necessary journal entries for the partnership's liquidation. Use a statement of liquidation as solution to each case.
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