Villanueva and Resultay Partnership

Statement of Liquidation

Cash Non-Cash Assets LiabilitiesVillanueva, Capital

P/L Percentages (3/4)
Balances before liquidation 250,000 450,000 300,000 200,000
Sales of Inv and Non-cash Assets
and Distribution of gain 170,000 -450,000 -210,000
Balances 420,000 300,000 -10,000
Payment of liabilities to
Outsiders -300,000 -300,000
Balances 120,000 -10,000
Investment by Villanueva 10,000 10,000
Balances 130,000
Payments to Partners -130,000
 Villanueva and Resultay Partnership
Journal Entries
Date Account Titles and Explanation PR Debit
Resultay, Capital 1 Cash 170,000
(1/4) Loss on Realization 280,000
200,000 Non-Cash Assets
To record sales of non-cash assets with Loss on realization
-70,000
130,000 2 Villanueva, Capital 210,000
Resultay, Capital 70,000
Loss on Realization
130,000 To record distribution of loss on realization

130,000 3 Liabilities 300,000

-130,000 Cash
To record the payments in liabilities

4 Cash 10,000
Villanueva, Capital
To record the additional investment of Villanueva

5 Resultay, Capital 130,000

Cash
To record distribution of cash to the partners
Credit

450,000

280,000

300,000

10,000

130,000