LUMP-SUM LIQUIDATION The statement of financial position of Claire, Karen, and Myrtle on July 1, 2012, when they

decided to liquidate is as follows: PBB TEENS PARTNESHIP Statement of Financial Position As of July 1, 2012 ASSETS Cash Other Assets LIABILITIES and PARTNERS’ EQUITY P 24,000.00 Liabilities P 134,400 408,000.00 Due to Karen 6,000 Due to Myrtle 9,600 Claire, Capital 114,000 Karen, Capital 72,000 Myrtle, Capital 96,000 P 432,000.00 TOTAL P 432,000

TOTAL

The partners share profits and losses in the ratio 2:2:1 Prepare a statement of liquidation for each of the following independent cases: 1. The other assets were sold for P 420,000 2. The other assets were sold for P 300,000 3. The other assets were sold for P 222,000. 4. The other assets were sold for P 204,000. Deficient partner was solvent. 5. The other assets were sold for P 204,000. Deficient partner was insolvent. INSTALLMENT LIQUIDATION The statement of financial position of ABC Partnership on December 31, 2011, when the partners decide to liquidate, is as follows: ASSETS LIABILITIES Cash P 200,000.00 Liabilities P 250,000.00 Other Assets 500,000.00 Due to A 70,000.00 A, Capital (30%) 200,000.00 B, Capital (40%) 30,000.00 C, Capital (30%) 150,000.00 Total P 700,000.00 Total P 700,000.00 Cash is realized for other assets as follows, and amounts realized are distributed at the end of each month to the appropriate parties. 2012 Asset Book Value Cash Proceeds January P 300,000.00 P 260,000.00 February 200,000.00 230,000.00 Prepare a statement of liquidation to summarize the course of liquidation. Provide schedules in support of monthly distribution.

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