Other Assets P 550,000 John, Loan 50,000John, Capital 225,000Paul, Capital 175,000Total
P 600,000 P 600,000
The partners share net income and net losses as follows: John, 60%; Paul, 40%. In
other, assets with acarrying amount of P 220,000 realized P 180,000, creditors were paid in full, and available cash wasdistributed to partners. In
other assets with a carrying amount P 100,000 realized P 120,000, andliquidation cost of P5,000 were paid. In
, the remaining other assets realized P 200,000, and finalsettlement was made between the partners.
Prepare the necessary journal entries and Statement of Liquidation as of June 1, 2006.
JP PARTNERSHIPStatement of LiquidationJune 1, 2006
CashOtherAssetsLiabilitiesJohnLoan JohnCapital(60%)Paul,Capital(40%)Balances beforerealizationP50,000P550,000P150,000P50,000P225,000P175,000 June InstallmentRealization of assets anddistribution of loss180,000(220000)(24,000)(16,000)BalancesP230,000P330,000P150,000P50,000P201,000P159,000Payment of Liabilities(150,000)(150,000)BalancesP80,000P330,0000P50,000P201,000P159,000Payment to partners-Schedule 1(80,000)(50,000)(3,000)(27,000)Balances0P330,00000P198,000P132,000 July InstallmentRealization of assets anddistribution of gain120,000(100,000)12,0008,000BalancesP120,000P230,00000P210,000P140,000Payment of liquidationexpenses(5,000)(3,000)(2,000)BalancesP115,000P230,00000P207,000P138,000