The statement of financial position of L, M, N just before liquidation shows the following: 10,000...

 

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The statement of financial position of L, M, N just before liquidation shows the following: 10,000 10,000 L. Capital 15,500 M. Capital 22,000 N, Capital 7,500 L, M,and N share profits and losses in the ratio of 3:2:5, respectively. The non-cash assets were sold for P 40,000. Cash Non-cash assets P 5,000 60,000 Accounts payable Niloan Required: a. Prepare the statement of partnership liquidation b. Prepare entries to record the liquidation of the partnership c. How much cash is available for distribution to partners in settlement of their capital balances? d. How much cash is received by N in full settlement of his total interest in the partnership, including loan? The statement of financial position of L, M, N just before liquidation shows the following: 10,000 10,000 L. Capital 15,500 M. Capital 22,000 N, Capital 7,500 L, M,and N share profits and losses in the ratio of 3:2:5, respectively. The non-cash assets were sold for P 40,000. Cash Non-cash assets P 5,000 60,000 Accounts payable Niloan Required: a. Prepare the statement of partnership liquidation b. Prepare entries to record the liquidation of the partnership c. How much cash is available for distribution to partners in settlement of their capital balances? d. How much cash is received by N in full settlement of his total interest in the partnership, including loan?

Answer rating: 100% (QA)

PART1 Realization of assets and distribution of loss Balances Payme... View the full answer