Problem #2 Lump-Sum Liquidation with Loss on Realization After several years of operations, the partnership of Miranda, Leon and Estoque is to be liquidated. After making the closing entries on March 31, 2019 the following accounts remained open: Account Balance Account Title Debit Credit Cash P 150,000 Other Assets 2,600,000 Liabilities P 750,000 Miranda, Capital 400,000 Leon, Capital 600,000 Estoque, Capital 1,000,000 The non-cash assets are sold for P2,150,000. Profits and losses are shared equally. Required: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of all non-cash assets. 2. Distribution of loss on realization to the partners. 3. Payment of the liabilities. 4. Distribution of cash to the partners