St.

Joseph College of Bulacan

San Jose Patag, Sta. Maria Bulacan

Lesson Module

Course Title: Accounting for Special Transactions Level: Third Year

Course Code: Pre - 6 Lesson No.: 5

Objectives:

At the end of this Module, the student will be able to:

1. Define partnership Liquidation
2. Identify and explain the different causes of partnership liquidation
3. Understand the nature of lumpsum liquidation
4. Identify the steps in partnership liquidation
5. Prepare a statement of liquidation
6. Prepare journal entries required in the books of the partnership

Subject Matter: Accounting for Partnership Liquidation – Lumpsum Liquidation

Procedures:
A. Motivation – the instructor will ask students to tell something about the picture.

1 | Page
B. Lesson Presentation

2 | Page
3 | Page
4 | Page
Illustration:

The partnership of Vhong and Ryan has been very unprofitable for the last four years.
After closing the partnership books on December 31, 2019, the partners decided to
liquidate before the partnership assets will be totally exhausted. Below is the
condensed statement of financial position of the partnership as of December 31, 2019.

Cash 20,000
Non-cash Assets 3,040,000
Total Assets 3,060,000

Liabilities 2,120,000
Vhong, Capital 600,000
Ryan, Capital 340,000
Total Liabilities and Capital 3,060,000

Additional information
⮚ All non-cash assets were sold for 80% of its book value

⮚ Liquidation expenses amounting to P24,000 was paid

⮚ All liabilities including unrecorded utilities bill amounting to P250,000 were paid

⮚ The profit and loss ratio is 40:60 to Vhong and Ryan respectively

Require: Prepare s Statement of Liquidation under each of the following cases:

⮚ Case 1 – Both partners are solvent
Vhong and Ryan Partnership
Statement of Liquidation
December 31, 2019

Trans Cash NonCash Liabilities Vhong Ryan Cap

Cap
Bal 20,000 3,040,000 2,120,000 600,000 340,000

Realization 2,432,000 (3,040,000) (364,800) (243,200)

Balance 2,452,000 -0- 2,120,000 235,200 96,800

Liq. (24,000) (14,400) (9,600)

Expenses

5 | Page
 Balance 2,428,000 -0- 2,120,000 220,800 87,200

Unrecorded (250,000) (150,000) (100,000)

Liabilities
Balance 2,178,000 -0- 2,120,000 70,800 (12,800)

Addition 12,800 12,800

contribution
Payment of (2,120,000) (2,120,000)
Liabilities

Balances 70,800 -0- -0- 70,800 -0-

Payment to (70,800) (70,800)

partners
-0- -0- -0- -0- -0-

Selling Price -3,040,000 x 80% = P2,432,000

Book Value 3,040,000
Loss on realization (608,000)
Vhong 60% 608,000 x 60% = 364,800
Ryan 40% 608,000 x 40% = 243,200

Cash 2,432,000
Vhong Capital 364,800
Ryan Capital 243,200
Noncash Assets 3,040,000

Vhong Capital 14,400

Ryan Capital 9,600
Cash 24,000

Vhong Capital 150,000

Ryan Capital 100,000
Cash 250,000

Liabilties 2,120,000

6 | Page
 Cash 2,120,000

Cash 12,800
Ryan Capital 12,800

Vhong Capital 70,800

Cash 70,800

⮚ Case 2 – The deficient partner is insolvent

Vhong and Ryan Partnership

Statement of Liquidation
December 31, 2019

Trans Cash NonCash Liabilities Vhong Ryan Cap

Cap
Bal 20,000 3,040,000 2,120,000 600,000 340,000

Realization 2,432,000 (3,040,000) (364,800) (243,200)

Balance 2,452,000 -0- 2,120,000 235,200 96,800

Liq. (24,000) (14,400) (9,600)

Expenses
Balance 2,428,000 -0- 2,120,000 220,800 87,200

Unrecorded (250,000) (150,000) (100,000)

Liabilities
Balance 2,178,000 -0- 2,120,000 70,800 (12,800)

Loss (12,800) 12,800

absorption
Payment of (2,120,000) (2,120,000)
Liabilities

Balances 58,000 -0- -0- 58,000 -0-

Payment to (58,000) (58,000)

partners
-0- -0- -0- -0- -0-

7 | Page
C. Application

EXERCISE 5-1
Reyes, Ibañez, and Perez, partners of RIP Partnership are to be liquidated after several
years of operation. The accounts below are remained open after closing entries were
prepared on June 30, 2013.

Debit Credit
Cash 150,000
Non-cash Assets 7,050,000
Liabilities 1,200,000
Reyes, Capital 2,700,000
Ibañez, Capital 1,500,000
Perez, Capital 1,800,000

The non-cash assets were sold for P7,950,000. Profits and losses are shared equally.

Required:

1. Prepare all entries to record the liquidation proceedings

2. Prepare a statement of partnership liquidation

EXERCISE 5-2
Reyes, Ibañez, and Perez, partners of RIP Partnership are to be liquidated after several
years of operation. The accounts below are remained open after closing entries were
prepared on June 30, 2013.

Debit Credit
Cash 150,000
Non-cash Assets 7,050,000

8 | Page
 Liabilities 1,200,000
Reyes, Capital 2,700,000
Ibañez, Capital 1,500,000
Perez, Capital 1,800,000

The non-cash assets were sold for P5,000,000. Profits and losses are shared equally.

Required:

1. Prepare all entries to record the liquidation proceedings

2. Prepare a statement of partnership liquidation

EXERCISE 5-3
On September 1, 2013, Corbo, and Denobo, partners of CD Frozen Delights
Partnership, decided to liquidate their business. At the time of liquidation, the statement
of financial position consisted of the following:

Cash 50,000
Non-cash Assets 1,200,000
Total Assets 1,250,000

Liabilities 250,000
Corbo, Capital 450,000
Denobo, Capital 550,000
Total Liabilities and Capital 1,250,000

Corbo and Denobo share profits and losses in the capital ratio. Corbo is personally
insolvent.

Required:

Prepare a statement of liquidation, assuming

1. Non-cash assets were sold for P1,000,000

2. Non-cash assets were sold for P700,000

3. Non-cash assets were sold for P500,000

4. Non-cash assets were sold for P300,000

9 | Page
5. If Corbo and Denobo share P & L in the ratio of 2:3, and non-cash assets were sold
for P400,000

6. If Corbo and Denobo share P & L in the ratio of 6:4, and non-cash assets were sold
for P400,000

7. If Corbo is solvent and non-cash assets were sold for P500,000

8. If Corbo is solvent, and they share P&L in the ratio of 6:4, and non-cash assets
were sold for P400,000

EXERCISE 5-4
The partners of Barreto’s Apparel have decided to liquidate their partnership. The
partners share profits and losses in the ratio of 2:2:1.

The statement of financial position prior to the liquidation is presented below:

Cash 126,000 Liabilities 617,000

Other Assets 911,000 Claudine, Capital 180,000
Marjorie, Capital 180,000
Gretchen, Capital 60,000
Total Liabilities and
Total Assets 1,037,000 capital 1,037,000

The other assets includes a note receivable from Claudine in the amount of P150,000.
The liabilities include a note payable to Marjorie of P80,000 and a note payable to
Gretchen of P120,000.

Required:

Determine the amount of cash each partner will receive for each of the following
independent cases:
a. Other assets were sold for P600,000 (all partners are solvent)

b. Other assets were sold for P540,000 (only Claudine is insolvent)

c. Other assets were sold for P540,000 and P50,000 of liquidation expenses
were paid. (only Claudine is insolvent)

EXERCISE 5-5

10 | Page
Archie, Ryan, Joelan, and Michael are partners with capital balances of P33,000,
P30,900, P41,100, and P27,000 respectively. Archie has a loan balance of P6,000.
They share profits and losses in the ratio of 4:3:2:1 respectively.

Assets are sold, liabilities are paid and cash of P36,000 remains.

Required:

1. Prepare all entries to record the liquidation proceedings

2. Prepare a statement of partnership liquidation

EXERCISE 5-6
Alzate, Ricate, and Malazarte, partners of ARM Partnership have decided to liquidate
their partnership on December 31, 2013. Shown below is the statement of financial
position as at December 31, 2013

Cash 50,000 Accounts Payable 480,000

Accounts receivable (net) 150,000 Loan Payable – Ricate 60,000
Inventories 200,000 Alzate, Capital 240,000
PPE (net) 600,000 Ricate, Capital 100,000
Malazarte, Capital 120,000
Total Assets 1,000,000 Total Liabilities and capital 1,000,000

Additional information:

a) The personal assets (excluding partnership capital and loan interest) and
personal liabilities of each partner as of December 31, 2013 are as follows:

Alzate Ricate Malazarte

Personal assets P500,000 600,000 700,000
Personal liabilities 460,000 480,000 650,000
Personal net worth 40,000 120,000 50,000

b) Alzate, Ricate, and Malazarte share profits and losses in the ratio of 2:4:4,
respectively.
c) According to the partnership agreement, interest will not accrue on the partner’s
loan balances during the liquidation process.
d) All of the non-cash assets were sold on January 31, 2014 for P520,000

Required:
Prepare a statement of liquidation on January 31, 2014.
11 | Page
ARM Partnership
Statement of Liquidation
January 31, 2013

Cash Noncash AP LP A, Cap R Cap M Capt

50,000 950,000 480,000 60,000 240,000 100,000 120,000
Realization 520,000 (950,000) (86,000) (172,000) (172,000)
Balances 570,000 -0- 480,000 60,000 154,000 (72,000) (52,000)
Offset (60,000) 60,000
Balance 570,000 -0- 480,000 -0- 154,000 (12,000) (52,000)
Liabilities (480,000) (480,000)
Balance 90,000 -0- -0- -0- 154,000 (12,000) (52,000)
Contri 62,000 12,000 50,000
Balance 152,000 -0- -0- -0- 154,000 -0- (2,000)
Absorption (2,000) 2,000
Balance 152,000 -0- -0- -0- 152,000 -0- -0-
Settlement (152,000) (152,000)
Balance -0- -0- -0- -0- -0- -0- -0-

50,

EXERCISE 5-7
On March 1, 2013, Ibañez, Alvarez, and Mendez formed a partnership by investing
cash of P120,000, P108,000, and P32,000 respectively and they agreed to divide
profits and losses in the ratio of 3:2:1 respectively. After six months, they have cash of
P10,000, other assets of P242,000, and liabilities of P64,000. By mutual agreement,
they decided to dissolve the firm on September 1 and to accept an offer of P98,000 for
the other assets. Ibañez and Alvarez are personally solvent but Mendez has personal
assets of only P90,000 against personal liabilities of P100,000.

Required:
1. Compute the amount Ibañez would receive in the distribution of cash to the
partners in final liquidation.
2. Compute the minimum amount that should be realized from the other assets to
enable Mendez to fully satisfy his personal obligations.

12 | Page
EXERCISE 5-8
Gilan, Joelan, and Ryan decided to liquidate their partnership on June 30, 2013. On
the date of liquidation they have cash of P60,000, other assets of P840,000 and
liabilities of P360,000. During the the first six months of 2013, the firm experienced a
P150,000 loss, which is shared in the ratio of ½ : ⅓: ⅙ respectively. On this date the
capital balance of each partner prior to closing nominal accounts follows: Gilan –
P192,000, Joelan – P410,000, and Ryan – P88,000. All partners are personally
insolvent.

Required:

1. Divide the loss that was sustained by the partnership among the three partners
and determine the balances in each capital account as of June 30, 2013.

2. Prepare a statement of partnership liquidation assuming that the other assets

were sold during December for
a) P660,000
b) P570,000
c) P516,000

EXERCISE 5-9
After all partnership assets were sold for cash and all available cash distributed to the
creditors, the ledger of Magda, Alona, and Xylef Partnership showed the following
balances:

Liabilities 40,000
Magda, Capital 20,000
Alona, Capital 120,000
Xylef, Capital (180,000)

The partners shares profits and losses in the ratio of 3:3:4. Personal assets and
liabilities of the partners are as follows:
Magda Alona Xylef
Personal assets 100,000 100,000 200,000
Personal liabilities 90,000 80,000 80,000
Personal net worth 10,000 20,000 120,000

The partnership creditors proceed against Xylef for recovery of their claims, and the
partners settle their claims against each other.

Required:
Prepare a statement of liquidation.

13 | Page
EXERCSIE 5-10
Barro, Caballero, and Romero are partners of BCR Company. On January 1, 2013, the
partnership decided to liquidate its operation. They have been sharing profits in the
ratio of 4:4:2 to Barro, Caballero, and Romero respectively. Shown below is the firm’s
trial balance on January 1, 2013.

Debit Credit
Cash 84,000
Accounts Receivable 379,200
Allowance for Doubtful Accounts 22,200
Merchandise Inventory 586,200
Prepaid Insurance 18,000
Land 240,000
Office Equipment 63,000
Accumulated Depreciation – OE 21,000
Machinery 163,200
Accumulated Depreciation – 64,200
Machinery
Building 750,000
Accumulated Depreciation – Bldg 225,000
Notes Payable 240,000
Accounts Payable 441,000
Mortgage Payable 480,000
Barro, Capital 270,000
Caballero, Capital 120,000
Romero, Capital 400,200
Totals 2,283,600 2,283,600

In January, 2013, the events took place during the process of liquidating the
partnership:

January 6 Accounts receivable of P303,000 are collected and the allowance for
doubtful accounts is written off
12 Merchandise inventory is sold for P321,000
15 A refund on the prepaid insurance is expected totaling P6,000
16 Property and equipment were sold for P222,000, the mortgage on the
building was also transferred to the buyer
18 The remaining creditors were paid in full
18 the deficit in Caballero’s account was absorbed by Barro and Romero
19 The deficit in Barro’s account was absorbed by Romero
25 The remaining cash is distributed to Romero

Required:
Prepare the journal to record the transactions.

14 | Page
D. Assessment

Name: ________________________________ Date: ___________________ Score:

Course/Year/Section: ____________________ Prof. ___________________________

Quiz No. 5
Lump-sum Liquidation

Test 1: True or False. Write the TRUE if the statement is correct and write the
word FALSE if the statement is false.

______ 1. Partnership dissolution is always followed by liquidation.

_
______ 2. The final distribution of cash to the partners shall be made based on
_ their profit and loss sharing agreements.
______ 3. In lump-sum liquidation, the distribution of cash to partners is made only
_ after all the non-cash assets have been realized, the total amount of
gain or loss on realization has been determined and distributed, and all
liabilities have been paid.
______ 4. In a statement of liquidation, there are only two classes of assets – cash
_ and other assets.
______ 5. After the distribution of cash to partners in partnership liquidation, the
_ business would have zero assets, liabilities, and owner’s equity.
______ 6. The liquidation ratios will always be equal to the profit and loss ratio of
_ the partners.
______ 7. If the deficient partner is insolvent, his deficiency will be absorbed by the
_ other partners distributed according to their profit and loss ratio.
______ 8. When the personal assets of a partner exceed his personal liabilities,
_ the partner is considered solvent but only to the extent of the excess
______ 9. Non-cash assets that are not sold should be written off as a loss and
_ such loss id divided to the partners equally.
______ 10. The right of offset is exercised when a partner’s capital account reports
_ a debit balance and he has at the same time a loan to the partnership.
______ 11. The amount offset in exercising the right of offset shall be the amount of
_ a partner’s loan to the partnership or the amount of his deficiency,
whichever is lower.
______ 12. The loan payable to a partner has a higher priority in liquidation than a
_ partner’s capital balance but a lower priority than liabilities to outside
creditors.
______ 13. Liquidation expenses which are incurred to facilitate the immediate
_ realization of non-cash assets affect cash but not capital.
______ 14. In partnership liquidation, advances and withdrawals are closed to
_ capital accounts since cash settlement is based on the partner’s capital
account balances.

15 | Page
______ 15. Personal creditors of individual partners have priority over partnership
_ creditors in the order of claims against the personal assets of the
partner.
______ 16. A deficient partner is automatically an insolvent partner.
_
______ 17. A deficient but solvent partner has to still share on the deficiency of an
_ insolvent partner in case of final liquidation.
______ 18. A partner with a loan to the partnership may never become a deficient
_ partner.
______ 19. A partner’s claims from the partnership, upon the liquidation, increase
_ the amount available for the partner’s personal debts.
______ 20. In a statement of liquidation, the accounting equation is observed
_ throughout the liquidation process.

Test 2: MULTIPLE CHOICES: Write the letter of your choice on the space provided.
___ 1. A partner’s interest includes
_
a. Capital balance c. A only
b. Partner’s loan to the d. A and B
partnership
___ 2. A capital deficiency can be eliminated by the following except
_
a. Offsetting against a c. Selling non-cash asset at a
partner’s loan gain
b. Additional investment d. Loss to the other partners
___ 3. In the final liquidation transaction, the remaining cash is distributed to the
_ partners. The partners share in the cash is according to their
a. Profit and loss ratio c. Capital balances
b. Withdrawals d. Cash balance
___ 4. The order of partnership liquidation process is
_ a. Sell assets, disburse cash to partners, pay liabilities
b. Disburse cash to partners, pay liabilities, sell assets
c. Pay liabilities, sell assets, disburse cash to partners
d. Sell assets, pay liabilities, disburse cash to partners
___ 5. When a partnership is liquidated, all of the following may occur, except
_ a. A partner erases his deficiency by declaring bankruptcy
b. The other partners absorb a partner’s deficiency
c. A partner erases his deficiency by contributing property
d. A partner erases deficiency by contributing cash

16 | Page
 Name: ________________________________ Date: ___________________ Score:
Course/Year/Section: ____________________ Prof. ___________________________

CHAPTER TEST
Lump-sum Liquidation

___ 1. Pomelo, Carolino, Dyna and Rossu are partners sharing earnings in the ratio of
_ 3:4:6:8. The balance of their capital accounts on December 31, 2012 are as follows:

Pomelo – P1,000, Carolino – P25,000, Dyna – P25,000 and Rossu – P9,000 for a
total capitalization of P60,000.

The partners decided to liquidate, and they accordingly convert the non-cash assets
into P23,200 of cash. After paying liabilities amounting to P3,000, they have P22,200
to divide. Assume that a debit balance in any of the partner’s capital is uncollectible.
The book value of the non-cash assets amounted to
a. P63,000 c. P45,400
b. P61,000 d. P25,200

___ 2. Using the information in No. 1, the share of Pomelo in the loss upon conversion of the
_ non-cash assets into cash was
a. P5,400 c. P37,800
b. P23,200 d. P61,000

___ 3. Using the information in No. 1, How much did Dyna get when the P22,200 was
_ divided?
a. P6,432 c. P10,000
b. P8,320 d. P14,200

___ 4. As of December 31, 2012, the books of GOA partnership showed capital balances of
_ G – P40,000, O – P25,000 and A – P5,000. The partner’s profit and loss ratio was
3:2:1 respectively. The partners decided to liquidate their partnership. They sold all
the non-cash assets for P37,000 cash. After settlement of all liabilities amounting to
P12,000, they still have P28,000 cash left for distribution. The loss on the realization
of the non-cash assets was
a. P28,000 c. P42,000
b. P40,000 d. P45,000

17 | Page
___ 5. Using the information in No. 4, and assuming any debit balances of partner’s capital is
_ uncollectible, the share of G on P28,000 cash for distribution was
a. P19,000 c. P17,800
b. P18,000 d. P40,000

___ 6. Using the information in No. 4, and assuming any debit balances of partner’s capital is
_ collectible, the share of G on the cash available for distribution was
a. P19,000 c. P17,800
b. P18,000 d. P40,000

___ 7. Abiñon, Bucane and Catam are partners in a textile distribution business sharing
_ profits and losses equally. On December 31, 2012, the partnership capital and
partner’s drawings are as follows:
Abiñon Bucan Catam Total
Capital P100,000 P80,000 P300,000 P480,000
Drawings 60,000 40,000 20,000 120,000

The partnership was unable to collect on trade receivables and was forced to
liquidate. Operating profit n the year 2012 amounted to P72,000 which was all
exhausted including the partnership assets. Unsettled creditors claim at December
31, 2012 totaled P84,000. Bucane and Catam have substantial private resources but
Abbey has no personal assets. Loss on liquidation was
a. P360,000 c. P480,000
b. P432,000 d. P516,000

___ 8. Using the information in No. 7, the final cash distribution to Catam was
_ a. P78,000 c. P108,000
b. P84,000 d. P162,000

___ 9. Carlo, Carmona, and Cara are in the process of liquidating their partnership and their
_ account balances as of October 1, 2012 are as follows:
Debit Credit
Cash 30,000
Non-cash assets 70,000
Carmona, loan 14,000
Carlo, Capital 10,000
Carmona, Capital 35,000
Cara, Capital 41,000

The profit and loss sharing ratio has been 4:3:3 between Carlo, Carmona and Cara,
Assuming that the partnership realized P30,000 cash from the sale of the non-cash
assets and that any deficiency is uncollectible. Carmona must receive

18 | Page
 a. P34,000 c. P19,000
b. P37,000 d. P49,000

___ 10 Using the information in No. 9, and assuming Carlo had personal assets of P50,000
_ . and personal liabilities of P45,000 and that the partnership realized P25,000 from the
sale of the non-cash assets, Cara must receive
a. P41,000 c. P26,000
b. P27,500 d. P25,000

___ 11 Using the information in No. 9, and Carlo to receive P12,000, the non-cash assets
_ . must be sold for
a. P30,000 c. P10,000
b. P12,000 d. P75,000

___ 12 The following condensed statement of financial position is presented for the
_ . partnership of X, Y and Z, who share profits and losses in the ratio of 6:2:2
respectively
Assets Liabilities and Capital
Cash P 40,000 Liabilities P 70,000
Other assets 140,000 X, capital 50,000
Y, capital 50,000
Z, capital 10,000
P 180,000 P 180,000

The partners agreed to liquidate the partnership and sold the other assets for
P80,000. How much should X receive upon liquidation assuming all the partners are
solvent
a. P12,500 c. P14,000
b. P13,000 d. P50,000

___ 13 Dina, Ehna, Fina and Gina share profits in the ratio of 2:1:1:1. The partnership cannot
_ . meet its obligations to creditors and dissolution is authorized on September 30, 2012.
A statement of financial position for the partnership on this date shows balances as
follows
Assets Liabilities and Capital
Cash P 90,000 Liabilities P 265,000
Other assets 400,000 Gina Loan 25,000
Dina Capital 50,000
Ehna Capital 50,000
Fina Capital 50,000
Gina Capital 50,000
P490,000 P 490,000

19 | Page
 The personal status of partners on this date determined to be as follows:

Partners Cash and Cash Value of Personal Liabilities

Personal Assets
Dina 250,000 150,000
Ehna 100,000 150,000
Fina 150,000 125,000
Gina 200,000 250,000

Other assets of the partnership are sold and realized for P120,000. Additional
contributions by appropriate parties in meeting the claims of firm creditors were made.
The amount that will be paid to the personal creditors of Dina would be
a. P150,000 b. P250,000 c.P165,000 d. P222,500

___ 14 Using the information in No. 13, the amount that will be paid to the personal creditors
_ . of Ehna would be
a. P100,000 c. P142,000
b. P150,000 d. P180,000

___ 15 Using the information in No. 13, the amount that will be paid to personal creditors of
_ . Gina would be
a. P250,000 c. P200,000
b. P217,500 d. P235,000

___ 16 The statement of financial position for the partnership of Poe, Que, and Mone, who
_ . share profits and losses in the ratio of P4:5:1 is as follows:
Assets Liabilities and Capital
Cash 100,000 Accounts payable 300,000
Inventory 720,000 Poe, capital 320,000
Que, capital 90,000
Mone, Capital 110,000
820,000 820,000

If the inventory is sold for P600,000, how much should Poe receive upon liquidation of
the partnership?
a. P96,000 c. P272,000
b. P200,000 d. P320,000

___ 17 Using the information in No. 16, and assuming that inventory was sold for P360,000,
_ . how much should Mone receive upon liquidation of the partnership?
a. P56,000 c. P74,000
b. P65,000 d. P110,000

20 | Page
___ 18 Items 18 – 20 are based on the following information:
_ . The following statement of financial position is for the LMN Partnership. The partners
share profits and losses in the ratio of 5:3:2 for Lah, Mah, and Ngera respectively:

Assets Liabilities and Capital

Cash 60,000 Liabilities 140,000
Other assets 540,000 Lah, capital 280,000
Mah, capital 160,000
Ngera, capital 20,000
600,000 600,000

Assuming the original partners agreed to liquidate the partnership by selling the other
assets, what should Lah receive if the other assets are sold for P400,000?
a. P205,000 c. P210,000
b. P206,000 d. P280,000

___ 19 What should Mah receive if the other assets are sold for P400,000?
_ . a. 114,000 c. P118,000
b. P115,000 d. P160,000

___ 20 What should Ngera receive if the other assets are sold for P400,000?
_ . a. P-0- c. P18,000
b. P8,000 d. P20,000

21 | Page