The DSV Partnership decided to liquidate as of June 30, 20X5. Its balance sheet as of this date follows: DSVPARTNERSHIP Balance Sheet At June 30, 20X5 Assets Cash Accounts Receivable (net) Inventories Property Plant and Equipment (net) $ 50,000 95,000 75,000 500,000 $720,000 Total Assets Liabilities and Partners Capital Liabilities: $405,000 Accounts Payable Partners Capital: D. Capital S. Capital V. Capital $100,000 140,000 75,000 Total Capital 315.000 Total Liabilities and Capital $720,000 Additional Information 1. The personal assets (excluding partnership loan and capital interests) and personal liabilities of each partner as of June 30, 20X5, follow $ 300,000 (240,000) $ 250.000 (270,000) $ 450,000 (420,000) Personal assets Personal liabilities $ 60,000 Personal net worth $ (20,000) $ 30,000 2. The DSV Partnership was liquidated during the months of July, August, and September The assets sold and the amounts realized follow: Carrying Amount Amount Realized $ 50,000 60,000 400,000 $ 25,000 10,000 S 25,000 100.000 Assets Sold Month Inventories Accounts receivable (net) Property, plant and equipment Inventories Accounts receivable (net) Accounts receivable (net) Property. plant and equipment S 45,000 40,000 305,000 S18.000 4,000 S 10.000 45.000 July August September Required: Prepare a statement of partnership realization and liquidation for the DSV Partnership for the three-month period ended September 30, 20X5. D, S, and V share profits and losses in the ratio 50:30:20, respectively The partners wish to distribute available cash at the end of each month after reserving $10,000 of cash at the end of both July and August to meet unexpected liquidation expenses. Actual liquidation expenses incurred and paid each month amounted to $2,500. Support each cash distribution to the partners with a schedule of safe installment payments. DSV PARTNERSHIP Statement of Partnership Realization and Liquidation-Installment Liquidation From July 1, 20X5, through September 30, 20X5 Capital Balances Noncash V 20% D 50% S 30% Liabilities Cash Assets Preliquidation balances, June 30 July, 20X5 Sale of assets and distribution of loss Liquidation expenses Payment to creditors Safe payments to partners (Sch 1) August, 20X5 Sale of assets and distribution of loss Liquidation expenses Safe payments to partners (Sch 2) September, 20X5: Sale of assets and distribution of loss Allocation of deficit partner balance Liquidation expenses Payments to partners Postliquidation balances DSV PARTNERSHIP Schedule of Safe Payments to Partners 50% 30% 20% Schedule 1, July 31. 20X5 Capital balances Potential Loss on noncash assets Allocation of D's potential deficit Allocation of V's potential deficit Safe payments to partners Schedule 2. August 31, 20X5 Capital balances Potential Loss on noncash assets Allocation of D's potential deficit Safe payments to partners