Reference no: EM132671611
Ana, Bana, and Cana are partners sharing P&L ratio of 4:3:3, respectively. On January 1, 2020, they decided to liquidate the partnership and the balance sheet were listed as follows:
ASSETS
Cash 1,000
Non-cash assets 23,000
Total Assets 24,000
LIABILITY AND EQUITY
Liabilities 3,000
Bana, Loan 2,500
Cana, Loan 1,250
Ana, Capital 7,225
Bana, Capital 6,275
Cana, capital 3,750
Total Liability and Equity 24,000
Additional Information:
BOOK VALUE
January 6,000
February 3,500
March 7,500
April 6,000
CASH REALIZED
January 5,250
February 3,000
March 5,000
April 2,500
PAYMENT OF LIQUIDATION EXPENSE
January 250
February 375
March 500
April 2,500
PAYMENT TO CREDITORS
January 3,000
CASH WITHHELD
January 1,000
February 500
March 1,250
April 0
Problem 1: Show a statement of liquidation using schedule of safe payments and cash priority programs using the above information.