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Marinel, Chesca and Denise are partners in MCD Partnership, share profit and loss in the ratio of 4:3:3, respectively. Due to continuing losses, they decided
Marinel, Chesca and Denise are partners in MCD Partnership, share profit and loss in the ratio of 4:3:3, respectively. Due to continuing losses, they decided to liquidate their partnership. At the time of liquidation, the following balances were available:
| Cash | P100,000 |
| Non-cash Assets | 500,00 |
| Liabilities | 120,000 |
| Marinel, Capital | 300,000 |
| Chesca, Capital | 150,000 |
| Denise, Capital | 30,000 |
Non-cash assets were sold at P600,000.
Requirements:
1.Prepare statement of liquidation
2. Prepare related journal entries.
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