Assume T, U, V and W are partners sharing profits 40%, 20%, 20%,20%, respectively. On July 1, 20x4, they agree to liquidate. A balance sheet prepared on this date: Assets Liabilities and Capital Noncash assets 151,500 Liabilities 70,000 T, loan 5,000 | W, loan 2,500 T, capital 22,000 U, capital 21,500 V, capital 17,000 W, capital 13,500 Total 151,500 151,500 The results of liquidation are summarized below: Cash proceeds sale of noncash assets Book value Costs noncash liquidation assets sold expenses paid Payment to creditors Cash withheld 20x4 55,000 15,000 July August Sept. Oct. Nov. 60,000 18,000 16,000 5,000 2,000 75,000 25,000 20,000 16,500 15,000 1,000 1,100 1,200 4,000 800 4,000 1,500 1,000 500 Required: Prepare a statement of realization and liquidation with supporting schedule of safe payments. Show all computations in good form.

Answer rating: 100% (QA)

A 1 2 Particulars 3 Balances before realization 4 JULY 5 Sale of non cash asset 6 Liquidation expens... View the full answer