Lump-Sum Liquidation with Loss on Realization Transcribed Image Text: After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated.

Academic Writing accounting, business-managerial-accounting Lump-Sum Liquidation with Loss on Realization Transcribed Image Text: After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated.

accounting, business-managerial-accounting

Lump-Sum Liquidation with Loss on Realization Transcribed Image Text: After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated.

Lump-Sum Liquidation with Loss on Realization Transcribed Image Text: After several years of operations, the partnership of Miranda, Leon and Estoque is to be
liquidated. After making the closing entries on March 31, 2019 the following accounts
remained open:
Account Balance
Account Title
Debit
Credit
Cash
P 150,000
Other Assets
2,600,000
P 750,000
Liabilities
Miranda, Capital
Leon, Capital
Estoque, Capital
400,000
600,000
1,000,000
The non-cash assets are sold for P2,150,000. Profits and losses are shared equally.
Required:
Prepare a statement of partnership liquidation and the entries to record the following:
1. Sale of all non-cash assets.
2. Distribution of loss on realization to the partners.
3. Payment of the liabilities.
4. Distribution of cash to the partners.

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