The partnership of Susan Casulla, Teofe Gonzales and Reynaldo Gulane whose trial balance is presented

below faces dissolution with liquidation

Debit Credit
Cash 20,000.00
Accounts Receivable 42,000.00
Allowance for Doubtful Accounts 40,000.00
Merchandise Inventory 30,000.00
Equipment 95,000.00
Accumulated Depreciation 5,000.00
Accounts Payable 5,000.00
Casulla, Loan 20,000.00
Casulla, Capital 40,000.00
Gonzales, Loan 24,000.00
Gonzales, Capital 16,000.00
Gulane, Capital 37,000.00
Total 187,000.00 187,000.00
The profit and loss ratio were 40%, 20% and 40% respectively.

1st Assumption: Non-cash assets were sold for 10,000.00. (Lump-Sum).

2nd Assumption: Non-cash assets were sold at: (Installment Liquidation)

Installment Non-Cash Assets Realized

1st 20,000.00 22,000.00
2nd 15,000.00 11,000.00
3rd 35,000.00 22,000.00
4th 37,000.00 30,000.00
5th 20,000.00 10,000.00