The Nice, Rice, and Dice Partnership has not been successful. The partners have determined they

must liquidate their partnership. The partners have agreed to liquidate the partnership and

anticipate that liquidation expenses will total P 1,000. Prior to the liquidation, the Partnership

Statement of Financial Position reflects the following book values:

Cash P18,000

Noncash Assets 51,000

Loans receivable-Nice 3,000

Other Liabilities 20,000

Nice, Capital 6,000

Rice, Capital 30,000

Dice, Capital 16,000

Profits and losses are shared 45% to Nice, 35% to Rice, and 20% to Dice. A review of the individual

partner's personal net worth reveals the following:

Assets Liabilities

Nice 165,000.00 162,000.00

Rice 200,000.00 110,000.00

Dice 185,000.00 90,000.00

The following transactions occur:

1. Assets having are sold for P22,000 cash.

2. Other liabilities is composed of P11,000 tax obligation to BIR and P9,000 liability to a friend, who is

a lender to the partnership. The partnership paid P11, 000 to BIR and remaining was condoned.

Requirement:

1. Prepare Statement of Liquidation. (5 points)

2. How much cash should be distributed to each partner after the liquidation? (5 points)