Question: Lump-Sum Liquidation EXERCISE 2 D, E and F are partners with a profit or loss ratio of 5:4:1, respectively. The partnership is to be liquidated.

Lump-Sum Liquidation EXERCISE 2 D, E and F are partners with

Lump-Sum Liquidation

EXERCISE 2 D, E and F are partners with a profit or loss ratio of 5:4:1, respectively. The partnership is to be liquidated. Prior to liquidation, the statement of financial position shows the following balances: Cash P 20,000 Liabilities Other assets 180,000 D, Capital E, Capital F, Capital P 20,000 80,000 60,000 40,000 After realization, E received P 30,000 as settlement of his interest. a. Required: Prepare the statement of partnership liquidation b. Prepare entries to record the liquidation of the partnership C. How much was the loss on the sale of assets? d. How much did F receive in final settlement of his interest? e. What amount of total cash was distributed to the partners

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