PARTNERSHIP LIQUIDATION

X, Y, and Z are partners sharing profits in the ratio of 5:3:2, respectively. A balance sheet prepared just prior to the partnership liquidation shows the following:

Capital Balances Loan Balances

X P122,000 P43,000

Y P72,000 P48,000

Z P47,000 P6,000

Assets are sold and cash is distributed to partners in monthly installments during the course of liquidation as follows:

January P20,000

FebruaryP50,000

MarchP80,000

April (final distribution)P20,000

Required:

1. Cash distribution program to show how cash is to be distributed during the entire course of liquidation.
2. Using the program developed above, make a schedule summarizing the payments to be made to partners at the end of each month.