RECONSTRUCTION OF INFORMATION o After all the assets (except the receivable from Leni) were realized and the liability to outside creditors were settled, Isko received P140,000 in the cash distribution to the partners. REQUIREMENT: ANK Compute for the following. Loss on sales Share of Leni in the cash distribution to the partners Only this part Cash available for distribution to the partners Net proceeds from the sale of the non-cash assets (except the receivable from Leni) NON-CASH ASSET USED AS PAYMENT FOR CLAIM o All the assets (except the receivable from Leni) were realized, except for the equipment with carrying amount of P60,000 which Isko will take at an equity set-off price of P20,000. The remaining cash of P35,000 is to be divided among the partners in a manner that will avoid the possible recovery of cash from a partner. REQUIREMENT: Compute for the total payment to Isko in cash and in kind. 6 NON-CASH ASSET USED AS PAYMENT FOR CLAIM Leni Isko TOTAL (60%) (40%) Capital balance 250,000 200,000 150,000 Payable to (Receivable from) partner 10,000) 20,000 10,000 Total 240,000 220,000 460,000 Allocation of loss (243,000) (162,000) (405.000) Total (3,000) 58,000 55,000 Payment in equipment (20,000) (20,000) Total (3,000) 38,000 35,000 Allocation of deficiency 3,000 (3,000) Cash received by the partners 35,000 35,000 LOSS COMPUTATION: Assets Liabilities Equity Cash (remaining) 35,000 460,000* Equipment (@ settlement price) 20,000 Totals 55,000 460,000 Inclusive at Total loss (balancing figure) = 55,000 - 460,000 = - 405.000 Payments to Isko (ANSWER) Equipment (in kind) 20,000 6 Cash 35,000 TOTAL PAYMENTS 55,000