Escareal, Acosta and Lopez Partnerships

Statement of Liquidation

Cash Non-Cash Assets LiabilitiesEscareal, Capital

P/L Percentages (2/6)
Balances before liquidation 150,000 1,000,000 250,000 300,000
Sales of Non-cash Assets
and Distribution of loss 460,000 -1,000,000 -180,000
Balances 610,000 250,000 120,000
Payment of liabilities to
Outsiders -250,000 -250,000
Balances 360,000 120,000
Additional losses to Escareal
and Lopes, 2:1 -40,000
Balances 360,000 80,000
Payments to Partners -360,000 -80,000
 Escareal, Acosta and Lopez Partnerships
Journal Entries
Date Account Titles and Explanation
Acosta, Capital Lopez, Capital 1 Cash
(3/6) (1/6) Loss on Realization
210,000 390,000 Non-Cash Assets
To record sales of non-cash assets with Loss on realization
-270,000 -90,000
-60,000 300,000 2 Escareal, Capital
Acosta, Capital
Lopez, Capital
-60,000 300,000 Loss on Realization
To record distribution of loss on realization
60,000 -20,000
280,000 3 Liabilities
-280,000 Cash
To record the payments in liabilities

4 Escareal, Capital
Lopez, Capital
Acosta, Capital
To record sharing of partners deficiency

5 Escareal, Capital
Lopez, Capital
Cash
To record distribution of cash to the partners
nerships

PR Debit Credit
460,000
540,000
1,000,000
with Loss on realization

180,000
270,000
90,000
540,000

250,000
250,000

40,000
20,000
60,000

80,000
280,000
360,000