Question
Assume A, B, C and D are partners sharing profits 40%, 20%, 20%, 20%, respectively. On January 1, 2019, they agree to liquidate. A balance
Assume A, B, C and D are partners sharing profits 40%, 20%, 20%, 20%, respectively. On January 1, 2019, they agree to liquidate. A balance sheet prepared on this date is shown as follows:
Assets Liabilities and Capital
Non- Cash assets P 181,800 Liabilities P 84,000 A, Loan 6,000 D, Loan 3,000 A, Capital 26,400 B, Capital 25,800 C, Capital 20,400 D, Capital 16,200 Total P 181,800 P 181,800
Results of liquidation are summarized below:
Month Proceeds Book Value Liquidation exp. Cash withheld
January P72,000 P90,000 P1,200 P4,800 February 21,600 30,000 1,320 1,800 March 19,200 24,000 1,440 1,200 April 6,000 19,800 4,800 600 May 2,400 18,000 960 -
Required: Prepare the statement of liquidation and related schedule of safe payment for the month of January to May 2019.
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