Question 1 Baba, Fafa, and Sasi who share income and loss in a 2:2:1 ratio, decide...

Transcribed Image Text:

Question 1 Baba, Fafa, and Sasi who share income and loss in a 2:2:1 ratio, decide to liquidate their partnership. At the time of liquidation, their statement of financial position appears as follows. Assets Cash Equipment Land Total assets Baba, Fafa and Sasi Statement of Financial Position 31 January 2023 Liabilities and Equity RM 150,000 Accounts Payable 200,000 Baba, Capital 400,000 Fafa, Capital Sasi, Capital RM750,000 Total liabilities and equity RM 221,500 210,000 178,000 140,500 RM750,000 Instruction: Prepare journal entries for (a) the sale of land and equipment sold as a package for RM500,000, (b) the allocation of the gain or loss, (c) the payment of the liabilities, and (d) the distribution of cash to the individual partners. Question 1 Baba, Fafa, and Sasi who share income and loss in a 2:2:1 ratio, decide to liquidate their partnership. At the time of liquidation, their statement of financial position appears as follows. Assets Cash Equipment Land Total assets Baba, Fafa and Sasi Statement of Financial Position 31 January 2023 Liabilities and Equity RM 150,000 Accounts Payable 200,000 Baba, Capital 400,000 Fafa, Capital Sasi, Capital RM750,000 Total liabilities and equity RM 221,500 210,000 178,000 140,500 RM750,000 Instruction: Prepare journal entries for (a) the sale of land and equipment sold as a package for RM500,000, (b) the allocation of the gain or loss, (c) the payment of the liabilities, and (d) the distribution of cash to the individual partners.

Answer rating: 100% (QA)

To solve this problem we need to follow the steps of liquidating the partnership a The sale of land ... View the full answer