Activity 1. Lump Sum Liquidation with Gain on Realization

After several years of operations, the partnership of Ana, Bada and Cada is to be

liquidated. After making the closing entries on June 20, 2016, the following accounts remain open:

Cash 50,000 Non-Cash Assets 2,350,000 Liabilities 400,000 Ana, Capital 900,000 Bada, Capital 500,000 Cada, Capital 600,000 The non-cash assets are sold for P2,650,000. Profits and losses are shared equally