The second image was only a guide in answering the question. (Optional only) disregard if not needed. RECONSTRUCTION OF INFORMATIONo After all the assets (except the receivable from Leni) were realizedand the liabilites to outside creditors were settled, Isko receivedP140,000 in the cash distribution to the partners.REQUIREMENT:ANKCompute for the following.Only this partLoss on sales Share of Leni in the cash distribution to the partners Cash available for distribution to the partners Net proceeds from the sale of the non-cash assets (except thereceivable from Leni) CASE DISCUSSION:o Leni and Isko are partners of Lenko Partnership which is currentlyliquidating. The firm's financial information is as follows:Cash20,000Accounts Payable30,000Accounts Receivable60,000Payable to Isko20,000Receivable from Leni10,000Leni, Capital - 60%250,000Inventory120,000Isko, Capital – 40%200,000Equipment, net290,000ТОТAL500,000ТОTAL500.000LUMP-SUM LIQUIDATIONThe non-cash assets were realized as follows:o 70% of the accounts receivable was collected; the balance isuncollectibleo The entire Inventory was sold for P20,000o P310,000 was received when the Equipment was soldo P12,000 liquidation expenses were paid.REQUIREMENT:Compute for the cash distributions to the partners.LUMP-SUM LIQUIDATIONCollection from accounts receivable (60K x 70%)42,00020,000310,000Sale of inventorySale of equipmentLiquidation expensesNet proceedsLess: Carrying amt. of all non-cash assets,(12,000)360.000except Receivable from Leni (60K + 120K +290K)(470,000)(110,000)LOSSLeni(60%)250.000IskoТОTAL(40%)Capital balance450,000200,00020,000Pavable to (Receivable from) partnerTotal(10,000)240,00010,000220,000(44.000) (110,000)176,000460,000Allocation of loss -110K x 60% & 40%(66,000)174.000Amounts received by the partners350.0001INSTALLMENT LIQUIDATIONLenki will be liquidated on installment basis. Cash distributions tothe partners will be made as cash becomes available. In the firstmonth of liquidation, the non-cash assets were realized as follows:o 50% of the accounts receivable were collected, and of theremaining balance, P10,000 is deemed worthlesso 75% of the inventory was sold at 80% of costo Equipment with carrying amount of P200,000 was sold forP185,000o P12,000 liquidation expenses were paid. Additional P5,000 areexpected to be incurred in the subsequent periods.REQUIREMENT:Compute for the cash distributions to the partners.INSTALLMENT LIQUIDATIONCollection from accounts receivable (60K x 50%)30,00072,000Sale of inventory (120K x 75% x 80%)Sale of equipment185,000Liquidation expensesEstimated future liquidation costNet proceedsLess: Carrying amt. of all non-cash assets,except Receivable from Leni (60K + 120K +290K)(12,000)(5,000)270,000(470,000)(200,000)LOSSLeni(60%)250.000(10,000)240.000Isko(40%)200,00020,000220,000ΤΟTAL450,000Capital balancePayable to (Receivable from) partnerTotal10,000460,000Allocation of loss(120,000)(80,000) (200,000)Amounts received by the partners120,000140,000260,0002

Question

The second image was only a guide in answering the question. (Optional only) disregard if not needed. RECONSTRUCTION OF INFORMATIONo After all the assets (except the receivable from Leni) were realizedand the liabilites to outside creditors were settled, Isko receivedP140,000 in the cash distribution to the partners.REQUIREMENT:ANKCompute for the following.Only this partLoss on sales> Share of Leni in the cash distribution to the partners> Cash available for distribution to the partners> Net proceeds from the sale of the non-cash assets (except thereceivable from Leni) CASE DISCUSSION:o Leni and Isko are partners of Lenko Partnership which is currentlyliquidating. The firm's financial information is as follows:Cash20,000Accounts Payable30,000Accounts Receivable60,000Payable to Isko20,000Receivable from Leni10,000Leni, Capital - 60%250,000Inventory120,000Isko, Capital – 40%200,000Equipment, net290,000ТОТAL500,000ТОTAL500.000LUMP-SUM LIQUIDATIONThe non-cash assets were realized as follows:o 70% of the accounts receivable was collected; the balance isuncollectibleo The entire Inventory was sold for P20,000o P310,000 was received when the Equipment was soldo P12,000 liquidation expenses were paid.REQUIREMENT:Compute for the cash distributions to the partners.LUMP-SUM LIQUIDATIONCollection from accounts receivable (60K x 70%)42,00020,000310,000Sale of inventorySale of equipmentLiquidation expensesNet proceedsLess: Carrying amt. of all non-cash assets,(12,000)360.000except Receivable from Leni (60K + 120K +290K)(470,000)(110,000)LOSSLeni(60%)250.000IskoТОTAL(40%)Capital balance450,000200,00020,000Pavable to (Receivable from) partnerTotal(10,000)240,00010,000220,000(44.000) (110,000)176,000460,000Allocation of loss -110K x 60% & 40%(66,000)174.000Amounts received by the partners350.0001INSTALLMENT LIQUIDATIONLenki will be liquidated on installment basis. Cash distributions tothe partners will be made as cash becomes available. In the firstmonth of liquidation, the non-cash assets were realized as follows:o 50% of the accounts receivable were collected, and of theremaining balance, P10,000 is deemed worthlesso 75% of the inventory was sold at 80% of costo Equipment with carrying amount of P200,000 was sold forP185,000o P12,000 liquidation expenses were paid. Additional P5,000 areexpected to be incurred in the subsequent periods.REQUIREMENT:Compute for the cash distributions to the partners.INSTALLMENT LIQUIDATIONCollection from accounts receivable (60K x 50%)30,00072,000Sale of inventory (120K x 75% x 80%)Sale of equipment185,000Liquidation expensesEstimated future liquidation costNet proceedsLess: Carrying amt. of all non-cash assets,except Receivable from Leni (60K + 120K +290K)(12,000)(5,000)270,000(470,000)(200,000)LOSSLeni(60%)250.000(10,000)240.000Isko(40%)200,00020,000220,000ΤΟTAL450,000Capital balancePayable to (Receivable from) partnerTotal10,000460,000Allocation of loss(120,000)(80,000) (200,000)Amounts received by the partners120,000140,000260,0002

Accepted Answer

During dissolution and liquidation, a partnership's financial situation must be assessed, including…