ASSIGNMENT 07

NAME: DATE:

PROBLEM SOLVING:

The following balances were taken from the book of TIWALA-LANG Partnership as of
July 1, 2018 when the partnership decided to liquidate:

Cash P 20,000
Accounts Receivable 60,000
Furniture & Fixtures 90,000
Equipment 185,500
Accounts Payable 10,000
Notes Payable 15,500
Payable, Lang 3,000
TIng, Capital 122,000
WAng, Capital 130,000
LAy-at, Capital 40,000
Lang, Capital 35,000

Profit and loss ratio is 2:2:3:3, respectively, Cash is distributed to partners as it becomes
available. Non-cash assets were sold for P200,000 during the liquidation process with
liquidation cost amounting to P3,000.

Assume that TIng and WAng are solvent and LAy-at and LAng are insolvent.

REQUIRED: Prepare the following:

A. STATEMENT OF LIQUIDATION
B. Corresponding JOURNAL ENTRIES