Module 4 Problem 2 PDF
Module 4 Problem 2 PDF
Module 4 Problem 2 PDF
The partners share profits and losses in a 4:4:2 ratio and all partners are personally solvent. LL received
P98,000 in cash in full settlement for her share of the partnership.
Required:
1. What was the selling price for the other assets?
2. Prepare a statement of partnership liquidation.
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Answers:
1. What was the selling price for the other assets?
JJ KK LL Total
Balances before liquidation 180,000 240,000 70,000 490,000
Gain on realization 56,000 56,000 28,000 140,000
Payment to partners 236,000 296,000 98,000 630,000
Statement of Liquidation
Assets Partners' Capital
LL
Cash Others Liabilities JJ (40%) KK (40%) (20%)
Balances before liquidation 50,000 500,000 60,000 180,000 240,000 70,000
Realization of assets and 640,000 (500,000) 56,000 56,000 28,000
distribution of loss
Balances 690,000 - 60,000 236,000 296,000 98,000
Payment of Liabilities (60,000) (60,000)
Balances 630,000 - 236,000 296,000 98,000
Payment to partners (630,000) (236,000) (296,000) (98,000)
This study source was downloaded by 100000855831521 from CourseHero.com on 11-21-2022 04:39:06 GMT -06:00
https://www.coursehero.com/file/91302203/Module-4-Problem-2pdf/
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