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This document summarizes the liquidation of a partnership between January 31, 20B and January 31, 20C. It shows the partners' capital balances, realizations of assets which resulted in losses, payments of liabilities, distributions of cash to partners. There were two installments of realization and cash distribution, on January 1, 20C and January 31, 20C, with losses and cash payments allocated according to each partner's share of the total capital. By the final payment, the partnership's assets had been fully liquidated and cash had been distributed to settle accounts.

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Evelyn Morillo
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90 views6 pages

5 3

This document summarizes the liquidation of a partnership between January 31, 20B and January 31, 20C. It shows the partners' capital balances, realizations of assets which resulted in losses, payments of liabilities, distributions of cash to partners. There were two installments of realization and cash distribution, on January 1, 20C and January 31, 20C, with losses and cash payments allocated according to each partner's share of the total capital. By the final payment, the partnership's assets had been fully liquidated and cash had been distributed to settle accounts.

Uploaded by

Evelyn Morillo
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 XLSX, PDF, TXT or read online on Scribd
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SANCIANGKO COMME

Statement of Partnership L
31 December 20B to 31 Ja

Balances before Realization

1st Installment - 1 January 20C:


Realization and Loss
Balances

Payment of Liabilities
Balances after first realization
Cash Payment to Partners:
Balances before 2nd Realization:

2nd installment- 31 January 20C:


Realization and loss
Balances
Final Cash Payment
Loan to Pozon
Capital to Partners

JOURNAL ENTRIES

Cash
Pozon, Capital
Selisana, Capital
Teque, Capital
Non Cash Assets
To record the first realization with loss.

Accounts Payable
Cash
To record the Payment of Liability,

Cash
Pozon, Capital
Selisana, Capital
Teque, Capital
Non Cash Asset
To record the 2nd realization of asset at loss.

Pozon, Loan
Cash
To record the payment to loan.

Pozon, capital
Selisana, Capital
Teque, Capital
Cash
To distribute cash to partners.
SANCIANGKO COMMERCIAL
tatement of Partnership Liquidation
31 December 20B to 31 January 20C
PARTNERS' CAPITAL BALANCES
Non- Pozon 30% 30% 40%
Cash Cash Liabilities Loan Pozon Selisana Teque

45 000 127 000 62 000 5 000 35 000 35 000 35 000

50 000 (57 000) ______ _______ (2 100) (2 100) (2 800)


95 000 70 000 62 000 5 000 32 900 32 900 32 200

(62 000) _______ (62 000) _______ ______ _______ ______


33 000 70 000 5 000 32 900 32 900 32 200
(33 000) ______ ______ (16 900) (11 900) (4 200)
70 000 5 000 16 000 21 000 28 000

59 500 (70 000) ______ (3 150) (3 150) (4 200)


59 500 5 000 12 850 17 850 23 800

(5 000) (5 000)
(54 500) (12 850) (17 850) (23 800)

Debit Credit
50 000
2 100
2 100
2 800
57 000

62 000
62 000

59 500
3 150
3 150
4200
70 000

5 000
5 000

12 850
17 850
23 800
54 500
PARTNERS
Total Pozon Selisana Teque

Capital Balances 98 000 32 900 32 900 32 200


Add: Loan Balances 5 000 5 000 _____ _____
Combined Capital
and loan balances 103 000 37 900 32 900 32 200

Balances after 1st Installm


Total non-cash assets before realization 127 000
Less: Book value of non cash assets during
first realization: 57 000
Theoretical Loss 70 000 Less: Theoretical Loss
Cash balances for distributi
Partners Theoretical Loss P/L Ratio Partner's Share
Pozon 70 000 x 30% 21 000
Selisana 70 000 x 30% 21 000
Teque 70 000 x 40% 28 000
Theoretical Loss as distributed 70 000

Balances after 2nd Installm

Final Cash Payment


SANCIANGKO COMMERCIAL
Schedule of Cash Payment
1st Installment January 20C

PARTNERS
Total Pozon Selisana Teque

Balances after 1st Installment:


Capital 98 000 32 900 32 900 32 200
Loan 5 000 5 000 ______ ______
Total 103 000 37 900 32 900 32 200
Less: Theoretical Loss (70 000) (21 000) (21 000) 28 000)
Cash balances for distribution 33 000 16 900 11 900 4 200

SANCIANGKO COMMERCIAL
Schedule of Cash Payment
2nd installment

PARTNERS
Total Pozon Selisana Teque

Balances after 2nd Installment:


Capital 54 500 12 850 17 850 23 800
Loan 5 000 5 000 ______ ______
Total 59 500 17 850 17 850 23 800
Final Cash Payment
Loan to Pozon (5 000) (5 000)
Capital to Partners (54 500) (12 850) (17 850) (23 800)

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