12. The operation of Red, White and Blue partnership did not go well so the partners decided to liquidate on March 31,2019. Capital balances of the partners after closing the loss incurred for the first quarter showed Red, P170,000 White, P125,000; and Blue, P105,000. Liabilities to outside creditors amounted to P150,000. All are sharing profits and losses equally. The non-cash assets were sold in April for P160,000 and the creditors were paid Remaining cash for distribution to partners after the liabilities were paid amounted to P40,000. Deficient partners are solvent but makes additional payment that is given as a second distribution to the appropriate partners. Direction: a) Determine the cash balance by working back from cash balance for distribution, then add the liabilities paid and deduct proceeds from sale. b) Determine the book value of the non-cash assets and the loss or gain from the sale c) Prepare a statement of liquidation considering the following steps: sale of non cash assets, payment of liabilities, distribution of available cash to appropriate partners supported by a schedule of safe payment considering the deficiency as a restricted interest, additional investment by deficient partner, final cash distribution. d) Joumalize the liquidation proceedings