1. A, B and C formed a limited partnership contributing P60,000.A and B are general partners, while C is the limited partner. The gross capital upon dissolution isP300,000, and the liabilities are as follows:

X -60,000C -20,000(ltd. Partner)

W-30,000A-10,000 (gen. partner)

Liquidate the partnership observing the order of preference, step by step.

2. A, B and C formed A and B Partnership, Ltd.A and B are general partners who contributed P45,000 each;C, the limited partner contributed P60,000.The partners share profits and losses equally.The total assets consisting of cash upon dissolution is P430,000 and the liabilities are the following:

A (gen. partner)P20,000

C (ltd. Partner)50,000

D (outside creditor)100,000

E (outside creditor)50,000

Liquidate the A and B Partnership, Ltd. Showing the step by step distribution of the P430,000 cash