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Chapter 5 Partnership

The document describes problems involving the liquidation of several partnerships. Problem 5-1 involves a partnership between Dizon, Tamala, and Dimalanta that is liquidating. Their statement of financial position is provided. They must prepare statements of partnership liquidation for five cases where non-cash assets are sold for different amounts. Problem 5-2 involves the partnership of Watin and Veloso that is liquidating, with their statement of financial position and additional details provided. They must prepare statements of partnership liquidation for two cases depending on whether Watin is solvent or insolvent. Problem 5-3 involves the partnership of Ponzon, Selisana, and Teque in a convenience store that is liquidating, with their

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Chapter 5 Partnership

The document describes problems involving the liquidation of several partnerships. Problem 5-1 involves a partnership between Dizon, Tamala, and Dimalanta that is liquidating. Their statement of financial position is provided. They must prepare statements of partnership liquidation for five cases where non-cash assets are sold for different amounts. Problem 5-2 involves the partnership of Watin and Veloso that is liquidating, with their statement of financial position and additional details provided. They must prepare statements of partnership liquidation for two cases depending on whether Watin is solvent or insolvent. Problem 5-3 involves the partnership of Ponzon, Selisana, and Teque in a convenience store that is liquidating, with their

Uploaded by

Rose Ayson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER 5

PARTNERSHIP: DISSOLUTION WITH LIQUADATION


EXERCISES AND PROBLEM
5-1
Dizon, Tamala, and Dimalanta who share profit and loss ratio of 2:1:2 decided to
liquidate their partnership on December 31, 2021. Their Statement of Financial
Position is shown below:
Centerpoint Commercial
Statement of Financial Position
As of December 31, 2021
ASSETS LIABILITIES AND PARTNER'S EQUITY
Cash 30,000 Liabilities 49,000
Non-cash 340,000 Dizon, Loan 20,000
Dizon, Capital 95,000
Tamala, Capital 100,000
Dimalanta, Capital 106,000
Total Assets ₱370,000 Total L&PE ₱370,000
Assume: Deficient partners are insolvent and absorbed by the solvent partner.
Prepare Statement of Partnership Liquidatioj in five separate cases abd
corresponding journal entries in recording the liquidation process.
1. Non-cash assets were sold for 350,000
2. Non-cash assets are sold for 200,000
3. Non-cash assets were sold for 90,000
4. Non-cash assets were sold for 60,000
5. Non-cash assets were sold for 40,000
5-2
The partnership of Watin and Veloso has come to an end. Upon their urgent
request, the accountant prepares the Statement of Financial Position as follows:
ASSETS LIABILITIES AND PARTNER'S EQUITY
Cash 20,000 Liablitirs 60,000
Inventories 80,000 Watin, Loan 10,000
Furniture and Fixtures 100,000 Watin, Capital 40,000
Veloso, Capital 90,000
Total Assets ₱200,000 Total L&PE ₱200,000
Non cash assets were realized for ₱85,000. The partners profit abd loss sharing is
6:4 respectively.
Requiered:
1. Prepare Statement of Partnership liquidation assuming:
a. Watin is solvent partner.
b. Wayin is an insolvent partner.
2. Journal entry to record the partnership liquidation under the two assumptions.

5-3
The partnership of Ponzon, Selisana, and Teque in the Cebu Convenience Store in
which the partners share profit on the ratio of 3:3:4 respectively, appeared as
follows:
Cash 45,000 AP 62,000
AR 60,000 Ponzon, Loan 5,000
Est. UA 3,000 57,000 Ponzon, Capital 35,000
Merchandise 70,000 Selisana, Capital 35,000
Teques, Capital 35,000
Total Assets ₱172,000 Total L&PE ₱172,000
On this date, the partnership decided to liquidate their business. In January 2021,
₱50,000 was collected from the custoners' accounts after which the partners have
agreed to write-off the balance including the valuation account by charging their
respective capital accounts.
The merchandise was realized towards thr month end at 75% of its realizable
value. At the end of January 2021 the liquidation process is over.

Required:
1. Prepare Statement of Partnership Liquidation
2. Jiurnal entries needed to complete the entire liquidation process.

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