On Jan 9, 2017, partners Kelly, Nera and Fei of KNF partnership decided to terminate the operation of their business because of the huge amount of Loss incurred in 2016. The business was heavily affected by typhoon. They share a profit and losses in the ratio of 4:3:3, respectively. All partners are personally solvent, and Nera is a limited partner. Statement of Financial Position ASSETS LIABILITIES & OWNER'S EQUITY Cash 256,000 Accounts Payable Accounts Receivable 60,000 Due to Nera Allow Bad depts (6,000) Due to Fei Due From Kelly 20,000 Kelly Capital Equipment 1,200,000 Nera, Capital Accumulated Depreciation (200,000) Total P 1,330,000 Fei, Capital Total P 900,000 30,000 20,000 140,000 101,200 138,800 # 1,330,000 The customer accounts are no longer collectible and the equipment were sold at a loss of 400,000 The liabilities to outside creditors were paid in full using all cash available and contribution of Kelly from his personal savings