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5.3 Barbara and Streisand are partners sharing profits and losses in the ratio of 55% and 45%. Barbara’s capital investment is P 18,000 and Streisand’s is P 14,000. It is decided by the partners that the business should be terminated. The firm has liabilities of P 28,800. Barbara has a loan to the firm in the amount of P 3,600 while Streisand’s loan is P 2,400. After realization, the cash on hand amounts to P 30,000. Any deficient partner is insolvent. REQUIRED: Working paper for the Statement of Liquidation and journal entries

5.3 Barbara and Streisand are partners sharing profits and losses in the ratio of 55% and 45%. Barbara’s capital investment is P 18,000 and Streisand’s is P 14,000. It is decided by the partners that the business should be terminated. The firm has liabilities of P 28,800. Barbara has a loan to the firm in the amount of P 3,600 while Streisand’s loan is P 2,400. After realization, the cash on hand amounts to P 30,000. Any deficient partner is insolvent. REQUIRED: Working paper for the Statement of Liquidation and journal entries

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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5.3 Barbara and Streisand are partners sharing profits and losses in the ratio of 55% and 45%. Barbara’s capital investment is P 18,000 and Streisand’s is P 14,000. It is decided by the partners that the
business should be terminated. The firm has liabilities of P 28,800.
Barbara has a loan to the firm in the amount of P 3,600 while
Streisand’s loan is P 2,400. After realization, the cash on hand
amounts to P 30,000. Any deficient partner is insolvent.

REQUIRED: Working paper for the Statement of Liquidation and journal entries.

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