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...

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.