Professional Documents
Culture Documents
5.3.2.5. CDG
5.3.2.5. CDG
CDG Partnership
Statement of Partnership Liquidation
December 31, 2001
Cash Other Assets Liabilities
Balances 25,000.00 475,000.00 240,000.00
Realization on net assets 260,000.00 -475,000.00
215,000×sharing ratios
Subtotals 285,000.00 0.00 240,000.00
Payment of Liabilities -240,000.00 -240,000.00
Subtotals 45,000.00 0.00 0.00
Payment of Loan -30,000.00
Subtotals 15,000.00 0.00 0.00
Investments 105,000.00
Subtotals 120,000.00 0.00 0.00
Absorption of deficiency
1,000×20/60
1,000×40/60
Subtotals 120,000.00 0.00 0.00
Settlement -120,000.00 0.00 0.00
2. Prepare the journal entries
ership Cash
ship Liquidation Cling, Capital
1, 2001 Ding, Capital
Ding, Loan Cling, Capital Ding, Capital Ging, Capital Ging, Capital
30,000.00 120,000.00 50,000.00 60,000.00 Other Assets
Cling, Capital
Ding, Capital
Cash
pare the journal entries to record the liquidation of the partnership. 3. Prepare a schedule showing how th
260,000.00 Schedule of Partner's Personal Asset
43,000.00
86,000.00
86,000.00
475,000.00 Personal Assets
Personal Liabilities
240,000.00 Personal net worth
240,000.00 Investments to Liquidation
Balance
30,000.00
30,000.00
85,000.00
60,000.00
25,000.00
333.33
666.67
10,000.00
76,666.67
23,333.33
100,000.00
ule showing how the partners' personal assets are to be distributed.
er's Personal Assets Distribution
b. The other assets are sold for P270,000 and Partner M is insolvent. Partner M's net worth, exclusiv
CASH OTHER ASSETS LIABILITIES
Balances 63,000.00 455,500.00 308,500.00
Realization on net assets 270,000.00 -455,500.00
185,500×sharing ratios
Subtotals 333,000.00 0.00 308,500.00
Payment of Liabilities -308,500.00 -308,500.00
Subtotals 24,500.00 0.00 0.00
Investment 7,100.00
Subtotals 31,600.00 0.00 0.00
Settlement -31,600.00 0.00 0.00
c. The other assets are sold for P270,000 and P24,875 of liquidation expenses are paid. Partner M is
CASH OTHER ASSETS LIABILITIES
Balances 63,000.00 455,500.00 308,500.00
Realization on net assets 270,000.00 -455,500.00
185,500×sharing ratios
Subtotals 333,000.00 0.00 308,500.00
Payment of Liabilities -308,500.00 -308,500.00
Subtotals 24,500.00 0.00 0.00
Payment of Liquidation Expense -24,875.00
Subtotals -375.00 0.00 0.00
Investment 12,075.00 0.00 0.00
Subtotals 11,700.00 0.00 0.00
Settlement -11,700.00 0.00 0.00
2. If the partners receive an offer of P 140,000 for the business, exclusive of the cash, would they be better off acce
The partners would be better off accepting the offer of P140,000 for the business.
M, CAPITAL Y, CAPITAL L, CAPITAL
90,000.00 90,000.00 30,000.00
would they be better off accepting the offer or liquidating under the condition in la above?