The DSV Partnership decided to liquidate as of June 30, 20X5. Its balance sheet as of this date follows:

DSV PARTNERSHIP Balance Sheet At June 30, 20X5
Assets
Cash				$	50,000
Accounts Receivable (net)					95,000
Inventories					75,000
Property, Plant and Equipment (net)					500,000
Total Assets				$	720,000
Liabilities and Partners Capital
Liabilities:
Accounts Payable				$	405,000
Partners Capital:
D, Capital	$	100,000
S, Capital		140,000
V, Capital		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:

	D					S					V
Personal assets		$	250,000				$	450,000				$	300,000
Personal liabilities			(270,000	)				(420,000	)				(240,000	)
Personal net worth		$	(20,000	)			$	30,000				$	60,000

2. The DSV Partnership was liquidated during the months of July, August, and September. The assets sold and the amounts realized follow:

Month	Assets Sold	Carrying Amount				Amount Realized
July	Inventories		$	50,000			$	45,000
	Accounts receivable (net)			60,000				40,000
	Property, plant and equipment			400,000				305,000
August	Inventories		$	25,000			$	18,000
	Accounts receivable (net)			10,000				4,000
September	Accounts receivable (net)		$	25,000			$	10,000
	Property, plant and equipment			100,000				45,000

Assume the following cash amounts were received during the months of July, August, and September from the sale of DSV Partnerships noncash assets:

July	$	390,000
August		22,000
September		55,000

The partnership wishes to keep $10,000 of cash on hand at the end of both July and August to pay for unexpected liquidation expenses. It paid liquidation expenses of $2,500 at the end of each month, July, August, and September. D, S, and V share profits and losses in the ratio 50:30:20, respectively. Required: a. Prepare a statement as of June 30, 20X5, showing how cash will be distributed among partners as it becomes available. (Do not round your intermediate calculations. Round your final answers to nearest whole dollar.)

Cash Distribution Plan June 30, 20X5 Loss Absorption Power D S V Capital Balances D S 50 % 30% V 20% Profit and loss sharing ratio Preliquidation capital balances Loss absorption potential (LAP) Decrease highest LAP to next highest LAP: $ ol $ ol $ 0 $ ol $ 0 $ 0 Decrease LAP to next highest level: $ $ $ 0 $ 0 $ 0 $ 0 Decrease LAPs by distributing cash in the P/L sharing ratio % % % b. Prepare schedules showing how cash is distributed at the end of July, August, and September 20X5. (Do not round your intermediate calculations. Round your final answers to nearest whole dollar.) S 30 % V 20% $ 0 Capital Account Balances June 30, 20X5, through September 30, 20X5 D Profit and loss ratio 50% Preliquidation balances, June 30 July loss on disposal of assets and payment of liquidation costs $ 0 $ July 31 distribution of available cash to partners (Sch. 1) in First layer: $ 0 $ August loss on disposal of assets and payment of liquidation costs $ 0 $ August 31 distribution of available cash to partners (Sch. 2) Remaining layer of which paid on July 31 Next layer: 0 $ 0 0 $ 0 $ 0 $ 0 $ 0 September loss on disposal of assets and payment of liquidation costs $ 0 $ 0 $ 0 Distribution of D's deficit $ 0 $ 0 $ 0 September 30 distribution of available cash to partners (Sch. 3) Next layer of which paid on August 31 Postliquidation balances $ 0 $ 0 $ 0