Kang, King, and Kong are partners in KKK partnership. They share profit or loss in the ratio of 5:3:2. Unable to agree on certain matters, the partners decided to liquidate their partnership. Prior to liquidation, the following balances were available: Cash P200,000 Non-cash assets 800,000 Liabilities 400,000 Loan Payable to Kong 50,000 Kang, Capital 300,000 King, Capital 150,000 Kong, Capital 100,000 The liquidation that took several months had the following results: Amounts Realized - net of liquidation expense Book value of the Non-cash assets sold January P460,000 P400,000 February 220,000 300,000 March 140,000 100,000 Required: Prepare a statement of liquidation supported by schedule of safe payment when appropriate. After payment of liabilities to outside creditors, assume that available cash is distributed to the partners.
Kang, King, and Kong are partners in KKK partnership. They share profit or loss in the ratio of 5:3:2. Unable to agree on certain matters, the partners decided to liquidate their partnership. Prior to liquidation, the following balances were available: Cash P200,000 Non-cash assets 800,000 Liabilities 400,000 Loan Payable to Kong 50,000 Kang, Capital 300,000 King, Capital 150,000 Kong, Capital 100,000 The liquidation that took several months had the following results: Amounts Realized - net of liquidation expense Book value of the Non-cash assets sold January P460,000 P400,000 February 220,000 300,000 March 140,000 100,000 Required: Prepare a statement of liquidation supported by schedule of safe payment when appropriate. After payment of liabilities to outside creditors, assume that available cash is distributed to the partners.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kang, King, and Kong are partners in KKK
| Cash | P200,000 |
| Non-cash assets | 800,000 |
| Liabilities | 400,000 |
| Loan Payable to Kong | 50,000 |
| Kang, Capital | 300,000 |
| King, Capital | 150,000 |
| Kong, Capital | 100,000 |
The liquidation that took several months had the following results:
| Amounts Realized - net of liquidation expense | Book value of the Non-cash assets sold | |
| January | P460,000 | P400,000 |
| February | 220,000 | 300,000 |
| March | 140,000 | 100,000 |
Required:
Prepare a statement of liquidation supported by schedule of safe payment when appropriate. After payment of liabilities to outside creditors, assume that available cash is distributed to the partners.
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