NN, OO, PP, QQ

Cash Priority Program

NN OO PP

Capital Balances 160,000 120,000 60,000

Add: Loan Balances 20,000 40,000 (18,000)
Partners' Total Interests 180,000 160,000 42,000
Divide by: Profit and Loss Ratio 50% 30% 10%
Loss Absorption Balance 360,000 533,333 420,000
Priority I: To QQ - - -
360,000 533,333 420,000
Priority II: To OO and QQ - (113,333) -
360,000 420,000 420,000
Priority II: To OO, PP, and QQ - (60,000) (60,000)
360,000 360,000 360,000
Priority IV: Based on Profit and Loss Ratio
 NN, OO, PP, QQ
ash Priority Program

Cash Priority Payment to

QQ NN OO PP QQ

100,000
(10,000)
90,000
10%
900,000
(366,667) 36,667
533,333
(113,333) 34,000 11,333
420,000
(60,000) 18,000 6,000 6,000
360,000 - 52,000 6,000 54,000
 Cash Accounts Payable Daniela, Capital
P/L Ratio 40%
Balances after selling of non-cash assets 20,000 10,000
Additional investment of Fredline 60,000
Balances 60,000 20,000 10,000
Payment of liabilities (20,000) (20,000) -
Balances 40,000 - 10,000
Additional losses to Daniela and Erika - -
Balances 40,000 10,000
Additionalinvestment of Daniela - (17,143)
Balances 40,000 (7,143)
Additional losses to Erika - 2,143
Balances 40,000 -
Payment to partners (45,000)

Daniela Erika Fredline

Personal Assets 50,000 50,000 100,000
Peronal Liabilities 45,000 40,000 40,000
Balances 5,000 10,000 60,000
Erika, Capital Fredline, Capital
30% 30%
60,000 (90,000)
60,000
60,000 (30,000)
- -
60,000 (30,000)
- 60,000
60,000 30,000
(12,857) 30,000
47,143 60,000
(2,143)
45,000
(45,000)
2 (B)
 PQR Partnership
Cash Priority Program

P Q R

Capital Balances 24,000 36,000 60,000

Add: Loan Balances 6,000 - (10,000)
Partners' Total Interests 30,000 36,000 50,000
Divide by: Profit and Loss Ratio 30% 30% 40%
Loss Absorption Balance 100,000 120,000 125,000
Priority I: To R - - (5,000)
100,000 120,000 120,000
Priority II: To Q and R - (20,000) (20,000)
100,000 100,000 100,000
Priority III: Based on Profit and Loss Ratio
 Cash Priority Payment to
P Q R

2,000

6,000 8,000 3 (d)

- 6,000 10,000
 TON Partnership
Statement of Liquidation
31-Dec-20

Cash
Profit and Loss Percentages
Balances before Liquidation ₱3,000
Realization of Non-Cash Assets and Distribution of Losses 37,000
Balances 40,000
Payment of Liabilities to Outsiders (12,000)
Balances 28,000
Additional losses to T and O -
Balances 28,000
Payment to Partners (28,000)
 TON Partnership
Statement of Liquidation
31-Dec-20

Noncash Assets Liabilities T, Capital O, Capital N, Capital

1/2 1/3 1/6
₱79,000 ₱12,000 ₱40,000 ₱25,000 ₱5,000
(79,000) - (21,000) (14,000) (7,000)
- 12,000 19,000 11,000 (2,000)
(12,000) - - -
- 19,000 11,000 (2,000)
(1,200) (800) 2,000
- - 17,800 10,200
(17,800) (10,200)
(a)
 Bill, Page, Larry and Scott
Statement of Liquidation

Cash Noncash Assets

Profit and Loss Percentages
Balances before Liquidation ₱100,000 ₱300,000
Realization of Non-Cash Assets and Distribution of Losses 150,000 (300,000)
Balances 250,000 -
Payment of Liabilities to Outsiders (100,000)
Balances 150,000 -
Additional Losses to Page, Larry, and Scott -
Balances 150,000
Payment to Partners (150,000)
ry and Scott
Liquidation

Liabilities Bill, Capital Page, Capital Larry, Capital Scott, Capital

40% 20% 10% 30%
₱100,000 ₱25,000 ₱110,000 ₱100,000 ₱65,000
- (60,000) (30,000) (15,000) (45,000)
100,000 (35,000) 80,000 85,000 20,000
(100,000) - - - -
- (35,000) 80,000 85,000 20,000
35,000 (11,667) (5,833) (17,500)
- 68,333 79,167 2,500
5 (a) (68,333) (79,167) (2,500)
7© 6 (b)
Schedule A
Dennis and Lily
Schedule of Safe Payments

Dennis Lily
Cash balances before Distribution of Cash 96,000 64,000
Loan Balance - -
Partners' Total Interests 96,000 64,000
Restricted Interests - possible loss of P100,000 if
nothing is realized on the remaining non-cash assets;
60:40 ratio (60,000) (40,000)
Free Interests - amounts paid to partners 36,000 24,000
8 (D) 9 (A)
 Dennis and Lily
Statement of Liquidation
June 1 - August 31,2018

Cash Inventory Liabilities

Balances before liquidation 100,000 200,000 100,000
First Sale of non-cash assets 60,000 (100,000) -
Balances 160,000 100,000 100,000
June - payment of liabilities partial (60,000) (60,000)
Balances 100,000 100,000 40,000
First Installation to Partners (Sched A) (60,000)
Balances 40,000 100,000 40,000
Second sale of non-cash assets 45,000 (100,000)
Balances 85,000 - 40,000
Payment of Liabilities Full (40,000) (40,000)
Payment to Partners 45,000 -

Dennis Lily
96,000 64,000
Unrealised Noncash assets (60,000) (40,000)
Balances 36,000 24,000
Dennis, Capital Lily, Capital
120,000 80,000
(24,000) (16,000)
96,000 64,000

96,000 64,000
(36,000) (24,000)
60,000 40,000
(33,000) (22,000)
27,000 18,000

27,000 18,000
10 (b) 11 ©
 Dennis and Lily
Statement of Liquidation
June 1 - August 31,2018

Cash Inventory
Balances before liquidation 100,000 200,000
First Sale of non-cash assets 60,000 (100,000)
Balances 160,000 100,000
June - payment of liabilities partial (60,000)
Balances 100,000 100,000
First Installation to Partners (Sched A) (100,000)
Balances - 100,000
Second sale of non-cash assets 10,000 (100,000)
Balances 10,000 -
Additional Investment of Dennis and Lily 30,000
Balances 40,000
Payment of Liabilities Full (40,000)
d Lily
iquidation
t 31,2018

Liabilities Dennis, Capital Lily, Capital

100,000 120,000 80,000
- (24,000) (16,000)
100,000 96,000 64,000
(60,000)
40,000 96,000 64,000
(60,000) (40,000)
40,000 36,000 24,000
(54,000) (36,000)
40,000 (18,000) (12,000)
18,000 12,000
40,000 - -
(40,000) 12 (a)
Required 1

Uno

Capital Balances 170,000

Add: Loan Balances -
Partners' Total Interests 170,000
Divide by: Profit and Loss Ratio 40%
Loss Absorption Balance 425,000
Priority I: To Tres -
425,000
Priority II: To Dos and Tres -
425,000
Priority III: To Uno, Dos, and Tres (25,000)
400,000
Priority IV: Based on Profit and Loss Ratio

Required 2
The Partner who has the highest priority is Tres.

Required 3

Uno, Capital 98,000

Dos, Capital 96,000
Tres, Capital 122,000
Cuatro, Capital 44,000
Cash 360,000

Uno Dos Tres Cuatro

Cash Based on the

Cash Priority
Program 10,000 30,000 100,000 -
Remaining Cash
Based on P/L Ratio 88,000 66,000 22,000 44,000
98,000 96,000 122,000 44,000

Required 4
 Uno, Capital 12,000
Dos, Capital 9,000
Tres, Capital 3,000
Cuatro, Capital 6,000
Cash 30,000

Uno Dos Tres Cuatro

Cash Available to
Partner based on P/l
Ratio 12,000 9,000 3,000 6,000
12,000 9,000 3,000 6,000
 PQR Partnership
Cash Priority Program

Cash Priority P
Dos Tres Cuatro Uno

150,000 140,000 80,000

- - -
150,000 140,000 80,000
30% 10% 20%
500,000 1,400,000 400,000
- (900,000) -
500,000 500,000 400,000
(75,000) (75,000) -
425,000 425,000 400,000
(25,000) (25,000) - 10,000
400,000 400,000 400,000 10,000

Total

140,000

220,000
360,000
Total

30,000
30,000
 Cash Priority Payment to
Dos Tres Cuatro

90,000

22,500 7,500

7,500 2,500
30,000 100,000 -