PARTNERSHIP LIQUIDATION

1. B
Gardo Gordo Total
Beginning Capital P30,000 P20,000 P50,000
Investment 62,275 70,695 132,970

Withdrawals (79,100) (65,245) (144,345)

Balance before
liquidation 13,175 25,450 38,625
Share on gain (60,000-
38,625) 12,825 8,550 21,375
P26,000 P34,000 P60,000
2. B
Alex Jay John
Balance before
liquidation P95,000 P80,000 P70,000

Share on loss (40,000) (20,000) (20,000)

55,000 60,000 50,000
Share on possible
loss(50:25:35)

(P265,000-150,000) (57,500) (28,750) (28,750)

(2,500) 31,250 21,250

2,500 (1,250) (1,250)

0 P20,000 P20,000
3.1. A

A (3/6) B (2/6) C (3/6)

Jan (6,000-9000) (1,500) (1,000) (1,500)

Feb (3,500-7,700) (2,100) (1,400) (700)

Mar (12,500-11,300) 600 200 100

Net share upon
realization 3,000(2,200) (2,100)
 3.2. C
Cash Priority Program
A B C
Capital Balances 12,500 7,000 3,000
Ratio /.5 /2/6 /1/6 A B C
25,000 21,000 18,000

(4,000) (4,000*.5) 2,000

21,000 21,000 18,000

A: (3,000*.5);
(3,000) (3,000) B: 3,000*2/6) 1,500 1,000

18,000 18,000 18,000

Cash Available P16,500

for A (1st) (2,000)

For A (2nd) (1,500)

For B (2nd) (1,000)

Remaining cash 12,000
Equally /3
Last Cash Received by B 4,000
Cash received by B (2nd) 1,000
P5000
3.3. 
4. C
Cash Priority
Program
x y z
Capital Balances 40,000 50,000 18,000
divide by Ratio (4:2:1) 70000 175,000 126,000 X Y Z

(49,000) (49,000*4/7) 14,000

70,000 126,000 126,000

A: (56,000*2/7));
(56,000) (56,000) B: (56,000*1/7) 16,000 8,000

70,000 70,000 70,000

Cash received by X 8,000

/4/7
14,000
1st 14,000
2nd 16,000
8,000
Total 52,000
4.1. B
Capital balance P40,000
Cash received 26,000
Loss 14,000
Divided by 4/7
24,500
Multiply by ratio of Z 1/7
3,500

Capital balance (18,000)

Cash received P14,500
 5. B P85,000 and P45,000, respectively.

6. C
A B C D
Capital 420,000 215,000 205,000 100,000

Share on loss of 1M (300,000) (300,000) (200,000) (200,000)

120,000 (85,000) 5,000 (100,000)

Loan, B 160,000
Loan, D 50,000
75,000 50,000
7. D
Jo Lee Vi
Capital balance before realization 350,000 250,000 350,000
Loss on realization
(squeeze) (300,000) (200,000) (500,000)
Capital balance after
realization 50,000 50,000 (150,000)
Absorption of Vi's
deficiency (90,000) (60,000) 150,000

Additional Investment (40,000) (10,000) -

8. A
Mikki Mylene Total
Balance upon liquidation 71,000 54,000 125,000

Loss on possible unrealization of NCA (equally) (55,000) (55,000) (110,000)

Balance 16,000 (1,000) 15,000

Liquidation expenses
(equally) (5,000) (5,000) (10,000)

Balances 11,000 (6,000) 5,000

Loss for possible insolvency of Mylene (6,000) (6,000)

Cash received 5,000 5,000
9. P95,000

Other
Cash Assets(squeeze) Liabilities Chiz Allan Win

Balances 50,000 450,000 150,000 150,000 100,000 100,000

Lumpsum 300,000 (450,000)

Share on loss on
realization (300,000-
450,000) equally (50,000)

400,000 100,000

Payment of liabilities (150,000)

250,000

Share on expenses (15,000) (5,000)

235,000 95,000
10. P488,000

Capital Balances:
A 8,000 *Cash remained 177,600
B 200,000 Add: Liabilities paid 24,000
C 200,000
Less: Cash realized
D 72,000 from noncash (185,600)
Cash beginning
Total Equity 480,000 balance 16,000
Total Liabilities 24,000
Total Equity and
Liabilities 504,000

Cash* (16,000)
NonCash Asset BV 488,000
11. 

12. B Hara Ives Jack

(4:3:3) 135,000 216,000 49,000
Loss on realization
(200,000) (80,000) (60,000) (60,000)

55,000 156,000 (11,000)

Share on Expenses (4,000) (3,000) (3,000)

51,000 153,000 (14,000)

Absorption of Jack's
deficiency (4:3) (8,000) (6,000) 14,000
43,000 147,000 -
13. C
LANE, capital (20%) 140,000
Share on possible loss on realization
of assets(230,000) (46,000)
Share on loss on remaining inventory
(20,000) (4,000)

90,000

Inventory received (60,000)

Cash received 30,000

14. D. From the personal assets of either Quezon or Salonga for some or all of their claims.

Quezon Roxas Salonga Tolentino

Personal Assets 100,000 30,000 80,000 1,000

Personal Liabilities (40,000) (60,000) (5,000) (28,000)

Equity 60,000 (30,000) 75,000 27,000

Partnership Interest 15,000 10,000(20,000) (30,000)

50,000 (3,000)

14. 2 
15. P186,000

Other
`` Cash Asset AP Loan fr. Kibel Kurt Kwatug Kibel

400,000 200,000 160,000 40,000 135,000 216,000 49,000

Realization of assets 100,000 (200,000) (40,000) (30,000) (30,000)

Payment of AP (160,000) (160,000)

Payment of Loan (40,000) (40,000)

Balances 300,000 - - - 95,000 186,000 19,000