FA#8

Problem 5-1
a. Non-cash assets were sold for ₱350,000
CENTERPOINT COMMERCIAL
Statement of Partnership Liquidation
31 December 20B
Dizon, PARTNER’S CAPITAL BALANCE
Cash Non- Liabilitie Loan (2) (1) (2)
cash s Dizon Tamala Dimalanta
Balance before ₱30,000 ₱340,00 ₱49,000 ₱20,000 ₱95,000 ₱100,000 ₱106,000
realization 0
Sale of non-cash 350,000 (340,000 4,000 2,000 4,000
assets and )
distribution gain
Balances ₱380,00 ₱49,000 ₱20,000 ₱99,000 ₱102,000 ₱110,000
Payment of (49,000) (49,000)
Liabilities
Balances ₱331,000 ₱20,000 ₱99,000 ₱102,000 ₱110,000
Payment of Loan (20,000) (20,000)
Balances ₱311,000 ₱99,000 ₱102,000 ₱110,000
Cash Distribution
to partners (311,000) (99,000) (102,000) (110,000)

Journal Entries
Cash ₱350,000
Non-cash Assets ₱340,000
Dizon, Capital 4,000
Tamala, Capital 2,000
Dimalanta, Capital 4,000
To record sale of non-cash assets and distribution of realization gain.
Accounts Payable ₱49,000
Cash ₱49,000
To record payment of liabilities.
Dizon, Loan ₱20,000
Cash ₱20,000
 To record payment of loan.
Dizon, Capital ₱99,000
Tamala, Capital 102,000
Dimalanta, Capital 110,000
Cash ₱311,000
To record cash distribution to partners.

b. Non-cash assets were sold for ₱200,000.

CENTERPOINT COMMERCIAL
Statement of Partnership Liquidation
31 December 20B
Dizon, PARTNER’S CAPITAL BALANCE
Cash Non- Liabilitie Loan (2) (1) (2)
cash s Dizon Tamala Dimalanta
Balance before ₱30,000 ₱340,00 ₱49,000 ₱20,000 ₱95,000 ₱100,000 ₱106,000
realization 0
Sale of non-cash 200,000 (340,000 (56,000) (28,000) (56,000)
assets and )
distribution gain
Balances ₱230,00 ₱49,000 ₱20,000 ₱39,000 ₱72,000 ₱50,000
Payment of (49,000) (49,000)
Liabilities
Balances ₱181,000 ₱20,000 ₱39,000 ₱72,000 ₱50,000
Payment of Loan (20,000) (20,000)
Balances ₱161,000 ₱39,000 ₱72,000 ₱50,000
Cash Distribution
to partners (161,000) (39,000) (72,000) (50,000)

The loss on realization is distributed as follows:

Dizon 140,000 x 2/5 = 56,000
Tamala 140,000 x 1/5 = 28,000
Dimalanta 140,000 x 2/5 = 56,000

Journal Entries
Cash ₱200,000
Dizon, Capital 56,000
Tamala, Capital 28,000
Dimalanta, Capital 56,000
Non-cash Assets ₱340,000
To record sale of non-cash assets and distribution of realization
loss.

Accounts Payable ₱49,000

Cash ₱49,000
To record payment of liabilities.

Dizon, Loan ₱20,000

Cash ₱20,000
To record payment of loan.

Dizon, Capital ₱39,000

Tamala, Capital 72,000
Dimalanta, Capital 50,000
Cash ₱161,000
To record cash distribution to partners.

c. Non-cash assets were sold for ₱90,000.

CENTERPOINT COMMERCIAL
 Statement of Partnership Liquidation
31 December 20B
Dizon, PARTNER’S CAPITAL BALANCE
Cash Non- Liabilitie Loan (2) (1) (2)
cash s Dizon Tamala Dimalanta
Balance before ₱30,000 ₱340,00 ₱49,000 ₱20,000 ₱95,000 ₱100,000 ₱106,000
realization 0
Sale of non-cash 90,000 (340,000 (100,000) (50,000) (100,000)
assets and )
distribution gain
Balances ₱120,000 ₱49,000 ₱20,000 (₱5,000) ₱50,000 ₱6,000
Payment of (49,000) (49,000)
Liabilities
Balances ₱71,000 ₱20,000 (₱5,000) ₱50,000 ₱6,000
Payment of Loan (5,000) 5,000
Balances ₱71,000 ₱15,000 ₱50,000 ₱6,000
Payment of Loan (15,000) (15,000)
Balance ₱56,000
Cash Distribution
to partners (56,000) (50,000) (6,000)

The loss on realization is distributed as follows:

Dizon 250,000 x 2/5 = 100,000
Tamala 250,000 x 1/5 = 50,000
Dimalanta 250,000 x 2/5 = 100,000
Journal Entries
Cash 90,000
Dizon, Capital 100,000
Tamala, Capital 50,000
Dimalanta, Capital 100,000
Non-cash Assets ₱340,000
To record sale of non-cash assets and distribution of realization
loss.

Accounts Payable ₱49,000

 Cash ₱49,000
To record payment of liabilities.

Dizon, Loan ₱5,000

Dizon, Capital ₱5,000
To offset loan against capital deficiency.

Dizon, Loan ₱15,000

Cash ₱15,000
To record payment of loan.

Tamala, Capital ₱72,000

Dimalanta, Capital 50,000
Cash ₱161,000
To record payment to partner’s capital account.

d. Non-cash assets were sold for ₱60,000

CENTERPOINT COMMERCIAL
Statement of Partnership Liquidation
 31 December 20B
Dizon, PARTNER’S CAPITAL BALANCE
Cash Non- Liabilitie Loan (2/5) (1/5) (2/5)
cash s Dizon Tamala Dimalanta
Balance before ₱30,000 ₱340,00 ₱49,000 ₱20,000 ₱95,000 ₱100,000 ₱106,000
realization 0
Sale of non-cash 60,000 (340,000 (112,000) (56,000) (112,000)
assets and )
distribution gain
Balances ₱90,000 ₱49,000 ₱20,000 (₱17,000) ₱44,000 (₱6,000)
Payment of (49,000) (49,000)
Liabilities
Balances ₱41,000 ₱20,000 (₱17,000) ₱44,000 (₱6,000)
Dizon’s Loan offset
against his capital (20,000) 20,000
deficiency
Balances ₱41,000 3,000 ₱44,000 (₱6,000)
Dimalanta is
insolvent, capital
deficiency (6,000) 6,000
absorbed by
Tamala.
Balances ₱41,000 ₱3,000 ₱38,000
Cash Distribution
to partners (41,000) ₱3,000 (38,000)

The loss on realization is distributed as follows:

Dizon 280,000 x 2/5 = 112,000
Tamala 280,000 x 1/5 = 56,000
Dimalanta 280,000 x 2/5 = 112,000

Journal Entries
Cash 60,000
Dizon, Capital 112,000
Tamala, Capital 56,000
Dimalanta, Capital 112,000
Non-cash Assets ₱340,000
To record sale of non-cash assets and distribution of realization
loss.
Accounts Payable ₱49,000
Cash ₱49,000
To record payment of liabilities.
Dizon, Loan ₱20,000
Dizon, Capital ₱20,000
To offset loan against capital deficiency.
Tamala, Capital ₱6,000
Dimalanta, Capital ₱6,000
To record capital deficiency of Dimalanta being absorbed by Tamala.
Tamala, Capital ₱41,000
Cash ₱41,000
To record payment to partner’s capital account.

e. Non-cash assets were sold for ₱40,000.

CENTERPOINT COMMERCIAL
Statement of Partnership Liquidation
 31 December 20B
Dizon, PARTNER’S CAPITAL BALANCE
Cash Non- Liabilitie Loan (2) (1) (2)
cash s Dizon Tamala Dimalanta
Balance before ₱30,000 ₱340,00 ₱49,000 ₱20,000 ₱95,000 ₱100,000 ₱106,000
realization 0
Sale of non-cash 40,000 (340,000 (120,000) (60,000) (120,000)
assets and )
distribution gain
Balances ₱70,000 ₱49,000 ₱20,000 (₱25,000) ₱40,000 (₱14,000)
Payment of (49,000) (49,000)
Liabilities
Balances ₱21,000 ₱20,000 (₱25,000) ₱40,000 (₱14,000)
Dizon’s Loan offset
against his capital (20,000) 20,000
deficiency
Balances ₱21,000 (5,000) ₱40,000 (₱14,000)
Dizon and
Dimalanta is
insolvent, capital 5,000 (19,000) 14,000
deficiency
absorbed by
Tamala.
Balances ₱21,000 ₱21,000
Cash Distribution
to partners (21,000) (21,000)

The loss on realization is distributed as follows:

Dizon 300,000 x 2/5 = 120,000
Tamala 300,000 x 1/5 = 60,000
Dimalanta 300,000 x 2/5 = 120,000

Journal Entries
Cash 40,000
Dizon, Capital 120,000
Tamala, Capital 60,000
Dimalanta, Capital 120,000
Non-cash Assets ₱340,000
To record sale of non-cash assets and distribution of realization
loss.
Accounts Payable ₱49,000
Cash ₱49,000
To record payment of liabilities.
Dizon, Loan ₱20,000
Dizon, Capital ₱20,000
To offset loan against capital deficiency.

Tamala, Capital ₱19,000

Dizon, Capital ₱5,000
Dimalanta, Capital 14,000
To record capital deficiency of Dimalanta being absorbed by Tamala.
Tamala, Capital ₱21,000
Cash ₱21,000
To record payment to partner’s capital account.