partnership.

Self-check Exercise: Instructions: Answer the following based on your understanding from your study of Module 2 Topic 2. A partnership has total assets of PS, total liabilities of P1, and the following capital balances of partners: A, capitall (50%)P2 and B, capital (50%) P2.. Are the following statements true or false? 1. If the total assets are realized for P3, the available cash for distribution to the partners is P4. 2. If the total assets are realized for P4, the available cash for distribution to the partners is P3. 3. If the total assets are realized for P3, the loss on the realization of assets is P2. 4. If the total assets are realized for P3, Partner A's share in the loss is P1. 5. If the assets and liabilities are realized and settled at carrying amounts, Partner B's share in the final distribution of cash is equal to his capital balance. 6. If the total assets are realized for P3, Partner B's share in the cash distribution is P1 [P2 capital balance - (P2 loss x 50%) ]. 7. If the available cash for distribution to the partners is P2, the amount of distribution to A is P1. 8. If the total assets of the partnership consist only of noncash assets and the loss on the realization of the non-cash assets is P3, the total net proceeds from the sale is P1. 9. If the total assets are realized for P4, partner A will receive P1.5 in the final distribution of cash. 10. If the total assets are realized for P6, Partner A will receive P3 in the final distribution of cash. 11. If after settlement of liabilities, the cash available for the partners' claims is P1, the loss on the realization of non-cash assets is P3. 12. If after settlement of liabilities, the cash available for the partners' claims is P2, the net proceeds from the sale is P1. A and B decided to liquidate their partnership. The partnership's records show the following information: Cash Non-cash 80,000 Total assets 80,000 Liabilities 15,000 Loan Payable to Partner A 10,000 Loan Payable to Partner B 17,000 A, capital (80%) 20,000 B, capital (20%) 18,000 Total liabilities and equity 80,000 Case #1: Lump-sum liquidation All the non-cash assets are sold for P50,000 Requirement: Determine the amount distributable to A and Bin liquidation. Case #2: Installment Liquidation The non-cash assets are sold in installments. Settlement of partner's claims shall be made in installments as cash becomes available. In the first sale, three-fourth (3/4) of non-cash assets are sold for P45,000. Requirement: Determine the amount distributable to A and B after the first installment sale. Case#3: Installment Liquidation The non-cash assets are sold in installments. Settlement of partner's claims shall be made in installments as cash becomes available. In first sale, half of the non-cash assets are sold for P15,000. Requirement: Determine the amount distributable to A and Bafter the first installment sale