Chapter 21_: (Partnership Liquidation: Installment) PROBLEMS I - Statement of Liquidation - Installment; Schedule of Safe Payments and Cash Payment Priority Program Assume T, U, V, and Ware partners sharing profits 40%: 20%: 20%: 20% respectively. On January 1, 20x4, they agree to liquidate. A balance sheet prepared on this date is shown as follows: Assets Liabilities and Capital Noncash Assets P 181,800 Liabilities P 84,000 A, loan 6,000 D, loan 3,000 A, capital 26,400 B, capital 25,800 C, capital 20,400 D, capital 16,200 Total P181,800 Total P181,800 The results of liquidation are summarized below: 20x4 Cash Book Value Costs of Payment to Cash Payment to proceeds on of Noncash liquidation Creditors withheld Partners Sale of Assets sold expenses Noncash paid Assets January P 72,000 P1,200 P 66,000 P 4,800 February 21,600 1,320 18,000 1,800 P 5,280 March 19,200 1,440 1,200 13,360 April 6,000 4,800 500 1.800 May 2,400 960 Distributors of cash to partners are normally done at month-end