The partnership of Mara, Teri, and Rita has been suffering financial difficulty. Partners decided to liquidate....

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The partnership of Mara, Teri, and Rita has been suffering financial difficulty. Partners decided to liquidate. The condensed statement of financial position of Mara, Teri and Rita on this date is as follows: Mara, Teri and Rita Partnership Statement of financial position December 31,2019 Assets Cash P 20,000 240,000 Other assets Total assets P 260,000 Liabilities & Capital Accounts payable P 40,000 102,000 88,000 30,000 Mara, Capital Teri, Capital Rita, Capital Total Liabilities & Capital P 260,000 The profit and loss ratio is: Mara, 30%; Teri, 20% and Rita, 50%. Rita has no personal assets other than her interest in the partnership. The non-cash assets were sold for P 160,000. Any deficient partner is insolvent, while others are solvent. Required: a. Prepare the statement of partnership liquidation b. Prepare entries to record the liquidation of the partnership The partnership of Mara, Teri, and Rita has been suffering financial difficulty. Partners decided to liquidate. The condensed statement of financial position of Mara, Teri and Rita on this date is as follows: Mara, Teri and Rita Partnership Statement of financial position December 31,2019 Assets Cash P 20,000 240,000 Other assets Total assets P 260,000 Liabilities & Capital Accounts payable P 40,000 102,000 88,000 30,000 Mara, Capital Teri, Capital Rita, Capital Total Liabilities & Capital P 260,000 The profit and loss ratio is: Mara, 30%; Teri, 20% and Rita, 50%. Rita has no personal assets other than her interest in the partnership. The non-cash assets were sold for P 160,000. Any deficient partner is insolvent, while others are solvent. Required: a. Prepare the statement of partnership liquidation b. Prepare entries to record the liquidation of the partnership

Answer rating: 100% (QA)

SOLUTION a Statement of Partnership Liquidation Cash Proceeds from Sale of Assets P 160000 Less P... View the full answer