The post-closing trial balance of XYZ is given below: Account Title Cash Account Receivable Allowance for...

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The post-closing trial balance of XYZ is given below: Account Title Cash Account Receivable Allowance for bad debts Merchandise Inventory Store Equipment Accumulated Depreciation Accounts Payable X, Loan Payable X, Capital Y, Capital Z, Capital Debit 20,000.00 60,000.00 30,000.00 50,000.00 160,000.00 Credit 6,000.00 25,000.00 10,000.00 10,000.00 20,000.00 35,000.00 54,000.00 160,000.00 Their profit and loss sharing ratio: X, 20%; Y, 30%; Z, 50%. XYZ decided to liquidate. The assets except cash realized a lump-sum price of P100,000.00 Prepare statement of Liquidation and Journal entry for Liquidation in this trial balance. The post-closing trial balance of XYZ is given below: Account Title Cash Account Receivable Allowance for bad debts Merchandise Inventory Store Equipment Accumulated Depreciation Accounts Payable X, Loan Payable X, Capital Y, Capital Z, Capital Debit 20,000.00 60,000.00 30,000.00 50,000.00 160,000.00 Credit 6,000.00 25,000.00 10,000.00 10,000.00 20,000.00 35,000.00 54,000.00 160,000.00 Their profit and loss sharing ratio: X, 20%; Y, 30%; Z, 50%. XYZ decided to liquidate. The assets except cash realized a lump-sum price of P100,000.00 Prepare statement of Liquidation and Journal entry for Liquidation in this trial balance.

Answer rating: 100% (QA)

To liquidate XYZ you need to determine how the assets and liabilities will be distributed among the partners X Y and Z based on their profit and loss sharing ratio Lets calculate the distribution Calc... View the full answer