A Read aloud Dray PARTNERSHIP LIQUIDATION PROBLEMS 1. A, B, and C are partners sharing profits in the ratio of 5:3:2, respectively. A balance sheet prepared just prior to partnership liquidation shows the following: A B C Capital Balances P122,000 P 72,000 P 47,000 Loan Balances 43,000 48,000 6,000 Assets are sold and cash is distributed to partners in monthly installments during the course of liquidation as follows: January P20,000 February 50,000 March 80,000 April (final distribution) 20,000 Required: a. Prepare a program to show how cash is to be distributed during the entire course of liquidation. b. Using the program developed above, prepare a schedule summarizing the payments to be made to partners at the end of each month. 2. D, E and F are partners sharing profits in the ratio of 40:35:25, respectively. On December 31, 2018, they agree to liquidate. A balance sheet prepared on this date follows: DEF Partnership Balance Sheet As of December 31, 2018 Cash P 2,000 Liabilities P 6,000 Other Assets 46,000 E, Loan 5,000 F, Loan 2,500 D, Capital 14,450 E, Capital 12,550 F, Capital 7.500 P48,000 P48,000 The results of liquidation are summarized below: Book Cash Expenses of Cash Wheld at end of month. Liability Value Realized Realization for estd. Future exps. paid Realizations January P12,000 P10,500 P500 P2,000 P4,000 February 7,000 6,000 750 1,250 2,000 March 15,000 10,000 600 500 April 12,000 4,000 400 All cash available, except the amount withheld for future expenses, is distributed at the end of each month. Required: Determine the share of each partner every month of distribution. 3. The balance sheet of ], K and L Partnership shows the following information as of December 31, 2018: Cash P 2,000 Liabilities P 5,000