PSBA - MANILA

ACCOUNTING 308 V. R. ESPIRITU

FORMAT OF CASH PRIORITY PROGRAM

LOSS ABSORPTION BALANCES CASH DISTRIBUTION
X Y Z X Y Z
Capital balance (per tb or fp)
Receivable from partner
Payable to partner
Total Partners' Interest
Divided by P & L ratio
Loss absorption balances (LAB)
Priority 1- partner with highest LAB
Highest LAB…………XX
Second Highest……..XX
Excess LAB………….XX
x P & L ratio…….……x%
Cash distribution…….
Priority 2- partner with highest LAB
Highest LAB…………XX
Second Highest……..XX
Excess LAB………….XX
x P & L ratio…….……x%
Cash distribution…….

Priority (Last) - accdg to P & L ratio