Cash P20,000; Accounts Receivable P60,000; Inventory P120,000; Equipment P300,000; Accounts Payable P30,000; Payable to B P20,000; A Capital (20%) P100,000; B Capital (30%) P150,000; C Capital (50%) P200,000

Installment liquidation

Use the fact pattern above but assume that the partnership will be liquidated over a prolonged period of time. Distribution to the partners will be made as cash becomes available. Information on the conversion of non-cash assets is as follows:

a. 75% of the accounts receivable was collected for only P30,000

b. Half of the inventory was sold for P40,000

c. Equipment with carrying amount of P200,000 was sold for P120,000

d. Actual liquidation expenses of P2,000 were paid.

e. Estimated future liquidation expenses totaled P1,000

f. P9,000 cash was retained in the business for potential unrecorded liabilities and anticipated expenses.

Requirement: Determine the amounts of cash distributed to the partners from the partial realization of partnership assets.