On January 1, 2018, the partners of AB, CD, and EF who share profits and losses in the ratio of 5:3:2, respectively, decide to liquidate their partnership. The partnership trial balance at this date is as follows: Debit 18,000 Credit Cash Accounts Receivable Inventory Machinery and Equipment (net) AB, Loan Accounts Payable CD, Loan AB, Capital CD, Capital EF, Capital 66,000 52,000 189,000 30,000 53,000) 20,000 118,000 90,000 74,000 355,000 355,000 The partners plan a program of piecemeal conversion of assets in order to minilize liquidation losses. All available cash, less an amount retained to provide for future expenses is to be distributed to the partners at the end of each month. No interest accrues on partners' loans during liquidation. A summary of the liquidation is as follows: January 2018 P51,000 was collected on accounts receivable, the balance is uncollectible. 2 P38,000 was received for the entire inventory 3. P2,000 liquidation expenses were paid. P50,000 was padi to outside creditors, after offset of a P3,000 credit memorandum received on January 11, 2013. P10,000 cash was retained in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. February 2018 6, P4,000 liquidation expenses were paid 7. P6,000 cash was retained in the business at the end of the month for potential unrecorded liabilities and anticipated expenses. March 2018 B P 146,000 was received on sale of all items of machinery and equipment. .P5,000 liquidation expenses were paid 0. The P30,000 loan from Able is approved by the partners for offset against his capital account. 11. No cash was retained in the business. Instructions: Prepare a schedule of safe payments to partners for the January and February liquidation. Prepare a Cash Priority Program and Supporting Schedules for Distribution. Prepare a Statement of Partnership Liquidation for the partnership. 1