1.

Prepare a cash priority program showing how cash will be distributed to the partners as it bec

ASC Partnership
Cash Priority Program
June 30, 2011

Balance
Alvin Sammy
Capital ₱ 175,000 ₱ 300,000
Loan Payable to Partner 25,000
Total Interest ₱ 200,000 ₱ 300,000
Divided by profit sharing ratio 50% 30%
Loss absorption balance ₱ 400,000 ₱ 1,000,000
Priority I - First P150,000 to Sammy -500,000
Balances ₱ 400,000 ₱ 500,000
Priority II - Next P50,000 to
Sammy and Cenon -100,000
Total ₱ 400,000 ₱ 400,000

2. If the first sale of noncash assets with a book value of P400,000 realizes P230,000 and availab
determine the amount of cash to be distributed to each partner.

ASC Partnership
Statement of Liquidation
June 30, 2001

Cash Non-cash Assets

Balances ₱ 100,000 ₱ 650,000
Realization 230,000 -400,000
Balances ₱ 330,000 ₱ 250,000
Payment of Liabilities -150,000
Balances ₱ 180,000 ₱ 250,000
Distribution of Cash -180,000
Total Payments to Partners ₱ - ₱ 250,000

ASC Partnership
Schedule of Safe Payments

Alvin Sammy
Balances ₱ 115,000 ₱ 249,000
Distribution of Loss -125,000 -75,000
Balances -₱ 10,000 ₱ 174,000
Additional Loss due to Alvin’s Deficiency 10,000 -6,000
Total Cash Distribution ₱ - ₱ 168,000
uted to the partners as it becomes available.

ASC Partnership
ash Priority Program
June 30, 2011

nce Payment
Cenon Alvin (50%) Sammy (30%) Cenon (20%) Total
₱ 100,000

₱ 100,000
20%
₱ 500,000
₱ 150,000 ₱ 150,000
₱ 500,000

-100,000 30,000 ₱ 20,000 50,000

₱ 400,000 ₱ 180,000 ₱ 20,000 ₱ 200,000

alizes P230,000 and available cash is distributed,

ASC Partnership
tement of Liquidation
June 30, 2001

CAPITAL
Loan Payable to
Liabilities Alvin Alvin Sammy Cenon
₱ 150,000 ₱ 25,000 ₱ 175,000 ₱ 300,000 ₱ 100,000
-85,000 -51,000 -34,000
₱ 150,000 ₱ 25,000 ₱ 90,000 249,00 ₱ 66,000
-150,000
₱ - ₱ 25,000 ₱ 90,000 ₱ 249,000 ₱ 66,000
-168,000 -12,000
₱ - ₱ 25,000 ₱ 90,000 ₱ 81,000 ₱ 54,000

Cenon
₱ 66,000
-50,000
₱ 16,000
-4,000
₱ 12,000
 SUBMITTED BY:
VILLANUEVA, CRIS
VILLANUEVA, MIGUEL JOSHUA
VILLAROSA, GLECY MAE
YURO, SHARWIN MAY