The following transactions transpire during the liquidation of the partnership: Of the total accounts receivable, 80% are collected with the rest judged as uncollectible. The land, building, and equipment are sold for P1,500,000. All liabilities are paid including loans from Michael. Safe capital distributions are made. Mikhael becomes personally insolvent. No further contribution will be forthcoming from this partner. All inventory is sold for P710,000. Liquidation expenses of P110,000