ASSIGNMENT 06 NAME: DATE: PROBLEM SOLVING: The following balances were taken from the book of TIWALA-LANG Partnership as of July 1, 2018 when the partnership decided to liquidate: Cash Accounts Receivable Furniture & Fixtures Equipment Accounts Payable Notes Payable Payable, Lang Ting, Capital WAng, Capital LAy-at, Capital Lang, Capital P 20,000 60,000 90,000 185,500 10,000 15,500 3,000 122,000 130,000 40,000 35,000 Profit and loss ratio is 2:2:3:3, respectively, Cash is distributed to partners as it becomes available. Non-cash assets were sold for P200,000 during the liquidation process with liquidation cost amounting to P3,000. Assume that Ting and WAng are solvent and LAy-at and LAng are insolvent. REQUIRED: Prepare the following: A. STATEMENT OF LIQUIDATION B. Corresponding JOURNAL ENTRIES Sample format for journal entries Date Description/Account Title Debit Credit Dec. 31 Cash 68,000 27,200 High, capital Medium, capital Low, capital Non-cash assets 13.600 277,200 136,000 Sample format for statement of liquidation High, Medium and Low Statement of Liquidation December 1-31, 2018 Loan payable to Low 40% High, Medium, Low, Capital Capital Capital 40% 20% 38,000 35,200 24,000 (27,200) (13,600) (27,200) 10,800 21,600 (3,200) Cash Non-cash Accounts assets payable Profit and loss ratio Balances before liquidation 8,000 136,000 44,800 a. Sale of non-cash assets 68,000 (136,000) Balances 76,000 44,800 b. Payment of liabilities (44,800) (44,800) Balances 31,200 C. Right of offset Balances 31,200 2.000 2,000 10,800 21,600 2,000 (2,000) (3,200) 2,000 (1,200) 10,800 21,600