The requirement is on the first box only. I included the other boxes as a guide to answer the question if needed (optional). It is under liquidation partnership- Accounting for special transactions subject. Thank you its just too hard for me to answer it since I don't have a book for a reference.

RECONSTRUCTION OF INFORMATION EASE DISCUSSION: I PRIORITY PROGRAM Leni and Isko are partners of Lenko Partnership which is currently o After all the assets (except the receivable from Leni) were realized liquidating. The firm's financial information is as follows: and the liabilityto outside creditors were settled, Isko received will be liquidated on installment basis. In the first mont P140,000 in the cash distribution to the partners. ation process, the non-cash assets were realized as follow Cash 20,000 Accounts Payable 30, Accounts Receivable 60,000 Payable to Isko 20, alf of the accounts receivable was collected REQUIREMENT: Receivable from Leni 10,000 Leni, Capital - 60% 250, 1% of the inventory were sold at 80% of cost Compute for the following. Inventory 20,000 Isko, Capital - 40% 200, quipment with carrying amount of P200,000 was s Loss on sales 85,000 Equipment, net 290,000 Share of Leni in the cash distribution to the partners TOTAL 500,000 TOTAL 12,000 liquidation expenses were paid. Additional P5,( 200, pected to be incurred in the subsequent periods. Cash available for distribution to the partners Net proceeds from the sale of the non-cash assets (except the receivable from Leni) given REMENT: for the cash distributions to the partners using a cash p: only this part NON-CASH ASSET USED AS PAYMENT FOR CLA JUMP-SUM LIQUIDATION I PRIORITY PROGRAM he non-cash assets were realized as follows: Leni Isko o All the assets (except the receivable from Leni) were realized, (60%) (40%) 250,000 200,000 except for the equipment with carrying amount of P60,000 which 70% of the accounts receivable was collected; the balance is I balance e to (Receivable from) partner 20,000 Isko will take at an equity set-off price of P20,000. The remaining uncollectible (10,000) 240,000 220,000 cash of P35,000 is to be divided among the partners in a manner The entire Inventory was sold for P20,000 by P/L ratio 60% 40% that will avoid the possible recovery of cash from a partner. P310,000 was received when the Equipment was sold um Loss Absorption Capacity (MLAC) 400,000 550,000 f payment and 1 st P12,000 liquidation expenses were paid. Leni Isko 400,000 550,000 Difference bet. 2nd and 1st (150,000) EQUIREMENT: Equal balance of MLAC 400,000 400,000 REQUIREMENT: ompute for the cash distributions to the partners. Compute for the total payment to Isko in cash and in kind. CASH PRIORITY PROGRAM 2ND 1S 1ST Priority (150,000 x 40%) 50,000 NON-CASH ASSET USED AS PAYMENT FOR CLA Leni Isko JUMP-SUM LIQUIDATION I PRIORITY PROGRAM (40%) TOTAL Capital balance 250,000 200,000 450.000 Payable to (Receivable from) partner (10,000) 20,000 10,000 240,000 220,000 460.000 Collection from accounts receivable (60K x 70%) 12,000 ion from accounts receivable (60K x 50%) Allocation of loss 43,000) (162,000) (405,000) inventory (120k x 75% x 80%) Total (3,000) 58,000 55 000 Sale of inventory equipment 310,000 ition of exp Payment in equipment (3,000) 38.000 (20,080) Sale of equipment 35.000 Liquidation expenses (12,000) :ed future liquidation Allocation of deficiency 3,000 (3,000) Net proceeds 360,000 its for accounts payable Cash received by the partners 35,000 35,000 Less: Carrying amt. of all non-cash assets, wailable to partners except Receivable from Leni (60K + 120K +290K) (470,000) LOSS (110,000) LOSS COMPUTATION Assets Liabilities Equity Cash (remaining) 35,000 Leni Isko Equipment (@ settlement price) 20,000 (60%) (40%) TOtCity of the payable to, and receivable from, the 1000 ??? 460,000 Leni Isko TOTAL vailable to partners Total loss (balancing figure) = 55,000 - 460,000 = - 405,000 (40% Capital balance 250,000 200,000 450,000 " 10,000 iority 60,00 Total Payable to (Receivable from) partner 240,000 220,000 460,000 Payments to Isko (ANSWER) 20,000 Allocation of loss -110K x 60% & 40% (66,000) (44,000) (110,000) it after priorities (by P/L ratio) 20,000 80,000 Equipment (in kind) Amounts received by the partners 174,000 176,000 350,000 ish distribution 120,000 140,000 Cash TOTAL PAYMENTS 15,000