Lump-Sum Liquidation Orian, Tejero, and Lacson are partners in the OTL Electric Company and share profits in ratio of 5:3:2. On June 30, 2014, they decided to liquidate the business. The statement of financial position at that date is as follows: Cash P 20,000 Liab’ P 30,000 Orian, Loan 15,000 Tejero, Loan 10,000 Non-cash Assets 135,000 Orian, Capital 80,000 Tejero, Capital 36,000 Lacson, Capital 14,000 Total Assets. © P170,000 Total Equities P170,000 The non-cash assets are sold for P95,000. Rather than require payments, all partners agreed to offset the receivable from Orian against his capital credit. Required: 1. Prepare a statement of liquidation. 2. Prepare the journal entries to account for the liquidation.Lump-Sum Liq lation During liquidation, the Partnership of Pateno, Bautista and Apalisoc became insolvent, On Jan. 17, 2014, after all non-cash assets had been realized and all available cash hay | been distributed to creditors, the statement of financial position of the partnership is a, follows: Pateno, Bautista and Apalisoc Statement of Financial Position January 17, 2014 Liabilities and Partners’ Capital Accounts Payable-Trade P 60,000 Pateno, Capital 120,000 Bautista, Capital (160,000) Apalisoc, Capital (20,000) Total Liabilities and Partners’ Capital po The partners share profits and losses (including gains and losses in liquidation) in the ratio 20%, 50% and 30%, respectively. On Jan. 17, 2014, the personal financial positions of the partners were as shown below: Partner Assets* Liabilities* Pateno P 60,000 P.80,000 Bautista 280,000 200,000 Apalisoc 250,000 240,000 Required: Prepare the journal entries to record the receipt of cash from Bautista and Apalisoc, the appropriate distribution of the cash, and the completion of the partnership liquidation.installment Liquidation: Schedule of Safe Payments The statement of financial po: before liquidation is as follows: ion for Paraiso and Ligeralde Partnership on June 1, 2014 Assets Liabilities & Capital Cash P 50,000 P 200,000 Other Assets 550,000 Paraiso, capital 225,000 Ligeralde, capital 175,000 Total Assets P 600,000 Total ies & Capital P 600,000 Partners Paraiso and Ligeralde share profits and losses 60:40, respectively. In June, assets with a book value of P220,000 were sold for P180,000, creditors were paid in ful and P20,000 was paid to partners. In July, assets with book value of P100,000 were sold for P120,000, liquidation expenses of P5,000 were paid and cash of P125,000 was paid to partners. In August, the remaining assets were sold for P225,000. Required: 1. How much cash should Ligeralde receive in June? 2. How much cash should Paraiso receive in July? 3. How much cash should Ligeralde and Paraiso receive in August?Installment ‘mh ——. Partners Limin, Parducho and Calingasan share profits and losses The partners decided to liquidate the partnership. Their statement of finan: prior to liquidation is: Assets Liabilities & Capital Cash P 400,000 ies P 600,000 Other Assets 2,100,000 Limin, Loan 80,000 Limin, Capital 400,000 Parducho, Capital 720,000 Calingasan, Capital 700,000 Total Assets P2,500,000 Total Liabilities & Capital P2,500,000 The partnership is to be liquidated by installment. The first sale of non-cash assets costing P1,200,000 realized P900,000. Liquidation expenses paid amounted to P20,000. Required: How much cash should be distributed to each partner?Installment Liquidation Espeleta and De Guia decided to dissolve and liquidate Espeleta and De Guia on Sept. 23, 2014. On that date, the statement of financial position of the partnership is as Espeleta and De Guia Statement of Financial Position Sept. 23, 2014 Assets ies and Partners’ Capital Cash P 5,000 Accounts Payable-Trade P 15,000 Other Assets 100,000 —_Loan Payable-De Guia 10,000 Espeleta, Capital 60,000 De Guia, Capital 20,000 Total _ _P 105,000 Total 105,000 On Sept. 23, 2014, non-cash assets with a carrying amount of P70,000 realized P60,000, and P64,000 was paid to creditors and partners, P1,000 being retained to cover possible liquidation costs. On Oct. 1, 2014, the remaining non-cash assets realized P18,000 (net of liquidation costs), and all available cash was distributed to partners. Espeleta and De Guia share profits and losses 40% and 60%, respectively. Required: 1. Prepare the cash priority program. 2. Prepare the journal entries to record the realization of assets and distribution of cash to creditors and partners.