PARTNERSHIP LIQUIDATION:

Read and analyze the following problem and answer the questions asked. Show your computations.

Cash P0

Non-Cash assets 85,000

Total Assets P 85,000

Liabilities 25,000

Loan payable to Partner F 11,000

Loan payable to Partner G 16,000

F, Capital (60% in P/L) 21,000

G, Capital (40% in P/L) 12,000

Total Liabilities and Equity P 85,000

Case # 1: Lump-sum liquidation

All the non-cash assets are sold for P53,000.

Case # 2: Installment Liquidation

The non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments as cash becomes available. In the first sale, three-fourths (3/4) of the non-cash assets are sold for P46,000.

Case # 3: Installment Liquidation

The non-cash assets are sold in installments. Settlement of partners' claims shall be made in installments as cash becomes available. In the first sale, 90% of the non-cash assets are sold for P60,000.

1. Under Case # 1: how much is the amount distributable to F?

2. Under Case # 1: how much is the amount distributable to G?

3. Under Case # 2: how much is the amount distributable to F after the 1st sale?

4. Under Case # 2: how much is the amount distributable to G after the 1st sale?

5. Under Case # 3: how much is the amount distributable to F after the 1st sale?

6. Under Case # 3: how much is the amount distributable to G after the 1st sale?