Problem #2
Lump-Sum Liquidation with Loss on Realization
Miranda, Leon and Estoque
Statement of Liquidation
March 31,2018
Cash
Profit and Loss Percentages
Balances before Liquidation ₱150,000
Realization of Non-Cash Assets and Distribution of Losses 2,150,000
Balances 2,300,000
Payment of Liabilities to Outsiders (750,000)
Balances 1,550,000
Payments to Partners (1,550,000)
Sale of Non-Cash Assets
Cash 2,150,000
Loss on Realization 450,000
Non-Cash Assets
Distribution of Loss on Realization based on Partners P/L Ratio
Miranda, Capital 150,000
Leon, Capital 150,000
Estoque, Capital 150,000
Loss on Realization
Payment of Liabilities
Liabilities 750,000
Cash
Distribution of Cash to Partners
Miranda, Capital 250,000
Leon, Capital 450,000
Estoque, Capital 850,000
Cash
Miranda, Leon and Estoque
Statement of Liquidation
March 31,2018
Other Assets Liabilities Miranda, Capital Leon, Capital Estoque, Capital
1/3 1/3 1/3
₱2,600,000 ₱750,000 ₱400,000 ₱600,000 ₱1,000,000
(2,600,000) (150,000) (150,000) (150,000)
- 750,000 250,000 450,000 850,000
(750,000)
- - 250,000 450,000 850,000
(250,000) (450,000) (850,000)
2,600,000
450,000
750,000
1,550,000
