A,B and Care partners, decided to liquidate their partnership. Profit and Loss is divided in the ratio of 2:3:1 respectively. A statement of Financial Position was prepared below:

ABC PARTNERSHIP

Statement of Financial Position

As of March 1, 2019

ASSETSLIABILITIES & PARTNERS EQUITY

Cash Ph20,000A/P Ph25,000

A/R50,000Loan Payable to B5,000

Merchandise Inventory40,000A Capital50,000

OfficeEquipment's105,00090,000B Capital45,000

Accumulated depr. (15,000 )C Capital75,000

TOTALPh200,000Total Liab. & Partners EquityPh 200,000

Additional Information: NonCash or Other Assets were sold for Ph 210,000

REQUIRED : 1. Prepare Statement of Partnership Liquidation2. Journal Entry to record payment of

Liabilities3. Entry for to record the cash distribution to partners.

ANSWERS:ABC PARTNERSHIP

Statement of Partnership Liquidation

March 1,2019

Cashother AssetsA/PLoan dueABCto B( 2/6)( 3/6 )(1/6)

1.Balance before

Liquidation Ph 20,000Ph 180,000Ph 25,000Ph5,000Ph 50,000Ph 45,000Ph 75,000

2.Selling of

Other Assets210,000(180,000)--10,00015,0005,000

Total BalancePh 230,0000Ph25,000Ph5,000Ph60,000Ph60,000Ph80,000

3.Payment of

Liabilities( 25,000 )-(25,000 )----

Total BalancePh 205,00000Ph5,000Ph60.000Ph60,000Ph80,000

4. Payment to

Partners(205,000 )00(5,000 )(60,000)( 60,000)(80,000 )

JOURNAL ENTRIES:2.A/PPh 25,000

1.A/PPh 25,000CashPh 25,000

Loan due to B5,000to record payment of liabilities

A Capital60,0003.Loan due to BPh 5,000

B Capital60,000A Capital60,000

C Capital80,000B Capital60,000

CashPh 230,000C Capital80,000CashPh 205,000

to record cash distribution to partners

ASSUME the above accounting Problem Analysis of ABC PARTNERSHIP with the additional information that the NON CASH or OTHER ASSETS WERE SOLD for PH 84,000. If any partner has a capital deficiency due to loan balance apply the RIGHT OF OFFSET