MOUNTAIN VIEW COLLEGE
SCHOOL OF BUSINESS AND ACCOUNTANCY
ACCOUNTING FOR SPECIAL TRANSACTIONS
WORKSHEET#4: PARTNERSHIP LIQUIDATION
INSTRUCTIONS: Answers and all necessary solutions to the requirements must be written in a clean
sheet of paper (all in good form). Submission format must be image file (png or
jpeg).
PROBLEM #1
A, B, and C are partners in a partnership and share profits and losses 40%, 40%, and 20%, respectively. The
partners have agreed to liquidate the partnership and anticipate that liquidation expenses will total P14,000. Prior
to the liquidation, the partnership balance sheet reflects that following books values:
Cash ……………………………………………………… P 25,000
Noncash assets ……………………………………….. 200,000
Note Payable to C …………………………………… 12,000
Other Liabilities ……………………………………… 165,000
Capital, A ………………………………………………. 40,000
