Cash Distribution to Partners

The Kit, Leonard and Mediv partnership had the following statement of financial position just before entering liquidation:

Cash 10,000

Non-cash 300,000

Total assets 310,000

Liabilities 130,000

Kit, capital (20%) 60,000

Leonard, capital (40%) 40,000

Mediv, capital (40%) 80,000

Total liabilities and P capital 310,000

Non-cash assets were sold for P180,000. Liquidation expenses were P10,000. Assume that Kit and Leonard are both personally insolvent.

Required:

What amount of cash could Kit's personal creditors have expected to receive from partnership assets?

Assume this time that Leonard is personally solvent. How much will be the amount of cash that Kit's creditors could expect from partnership assets?

What is the minimum amount that the non-cash assets could be sold so that no partner will have capital deficiency?