The following are the ledgerbalances of accounts X Partnership prior to the liquidation process:

Cash P45,000 Loanspayable- Professor P15,000

Accounts receivable 60,000 Liabilities 225,000

Inventories 195,000 Professor, Capital(30%) 120,000

Land 150,000 Wolverine, Capital (40%) 240,000

Building 240,000 Beast, Capital (30%) 210,000

Furniture 120,000

Required: Prepare statement of liquidationandthe journal entriesfor each of the following assumption.

1.All non cash assets were sold at P1,000,000.

2.All non cash assets are sold at P600,000. All partners are solvent.