Installment liquidation: takes place for several months to complete, and periodic or installment payments are made to the partners during the liquidation period because they require funds for personal purposes. Most partnership liquidations take place over an extended period in order to obtain the largest possible amount from realization of the assets. Instalment liquidations involve a distribution of cash to partners before complete liquidation of assets occurs, they are two methods for ensuring fairness and equality in making cash distributions (1) safe payment schedule and (2) cash distribution plan. A safe payment schedule determines what amounts may be safely distributed to which partner without violating any of the principles of liquidation. the statement of partnership realization and liquidation with a safe payment schedule for the two month liquidation period.

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Answer 1

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 16, Problem 16.14P

To determine

Installment liquidation: takes place for several months to complete, and periodic or installment payments are made to the partners during the liquidation period because they require funds for personal purposes. Most partnership liquidations take place over an extended period in order to obtain the largest possible amount from realization of the assets.

Instalment liquidations involve a distribution of cash to partners before complete liquidation of assets occurs, they are two methods for ensuring fairness and equality in making cash distributions (1) safe payment schedule and (2) cash distribution plan.

A safe payment schedule determines what amounts may be safely distributed to which partner without violating any of the principles of liquidation.

the statement of partnership realization and liquidation with a safe payment schedule for the two month liquidation period.

Expert Solution & Answer

Explanation of Solution

ABC partnership

Statement of realization and liquidation

From January 1, 20X1 to March 31, 20X1

				Capital
	Cash	Assets	liabilities	A 50%	B 30%	C 20%
Balance before liquidation	18,000	307,000	53,000	88,000	110,000	74,000
Transaction in January
Collection of receivable at loss $15,000	51,000	(66,000)		(7,500)	(4,500)	(3,000)
Sale of inventory at loss $14,000	38,000	(52,000)		(7,000)	(4,200)	(2,800)
Liquidation expenses	(2,000)			(1,000)	(600)	(400)
Share of credit memo			(3,000)	(1,500)	(900)	(600)
Payments to creditors	(50,000)		(50,000)
	55,000	189,000	0	74,000	101,600	68,400
Safe payment schedule 1	(45,000)				(26,600)	(18,400)
	10,000	189,000	0	74,000	75,000	50,000
Transactions February
Liquidation expenses	(4,000)			(2,000)	(1,200)	(800)
	6,000	189,000	0	72,000	73,800	49,200
Safe payment schedule 2	0	0	0	0	0	0
Balance February	6,000	189,000	0	72,000	73,800	49,200
March transactions
Sale of M&Eq at loss	146,000	(189,000)		(21,500)	(12,900)	(8,600)
Liquidation expenses	(5,000)			(2,500)	(1,500)	(1,000)
	147,000	0	0	48,000	59,400	39,600
Payment to partners	(147,000)	0	0	(48,000)	(59,400)	(39,600)
Balance March 31	0	0	0	0	0	0

Safe payment schedule for the month:

	A 50%	B 30%	C 20%
Schedule 1 January
Capital balances	74,000	101,600	68,400
Possible losses:
Other assets and liquidation cost (189,000 + 10,000)	(99,500)	(59,700)	(39,800)
	25,500	41,900	28,600
Absorption of A’s potential deficit	(25,500)
B $25,500 x 3/5		15,300
C 25,500 x 2/5			10,200
	0	26,600	18,400
Schedule 2 February
Capital balances	72,000	73,800	49,200
Possible loss
Other assets and liquidation cost (189,000 + 6,000)	(97,500)	(58,500)	(39,000)
	(25,500)	15,300	10,200
Absorption of A’s potential deficit	25,500
B 25,500 x 3/5		(15,300)
C 25,500 x 2/5			(10,200)
Safe payment February	0	0	0

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Installment Liquidation: Practice ProblemEspeleta and De Guia decided to dissolve and liquidate Espeleta and De Guia on Sept. 23, 2019. On that date, the statement of financial position of the partnership is as follows: Espeleta and De GuiaStatement of Financial PositionSept. 23, 2019 Assets Cash P 5,000Other Assets 100,000 Liabilities and Partners’ Capital Accounts Payable-TradeP 15,000 Loan Payable-De Guia 10,000 Espeleta, Capital 60,000 De Guia, Capital 20,000 On Sept. 23, 2019, non-cash assets with a carrying amount of P70,000 realized P60,000, and P64,000 was paid to creditors and partners, P1,000 being retained to cover possible liquidation costs. On Oct. 1, 2019, the remaining non-cash assets realized P18,000 (net of liquidation costs), and all available cash was distributed to partners. Espeleta and De Guia share profits and losses 40% and 60%, respectively. Required:1. Partnership liquidation statement2. Schedule of safe payments3. Cash priority program including distribution…

As of December 31, 2021, the books of GOV Partnership showed the following balances: G – P400,000; O – P250,000; V – P50,000; Liabilities – P500,000; Cash – P55,000. The noncash assets include Accounts Receivable – V for P20,000. The partners share profits and losses in the ratio of 3:1:2. The partners decided to liquidate by installment after unfavorable results of operation for the last three years. Before the liquidation starts, the bookkeeper discovered unpaid bills amounting to P15,000 they scheduled payment immediately. In the first month, 50% of the noncash assets were realized for P500,000. Liquidation expenses of P10,000 and P350,000 of liabilities were paid. At the end of the first month, the available cash was paid to partners after setting aside P5,000 for contingencies. How much cash was available to partners?

On January 1, 2020, ACJ Partnership entered into liquidation. The partners capital balances on this date were as follows: A (25%) P2,500,000 ; C (35%) P5,400,000 ; J (40%) P3,700,000. The partnership has liabilities amounting to P4,400,000, including a loan from C P600,000. Cash on hand before the start of liquidation is P800,000. With the information given, answer the following independent situations: Noncash assets amounting to P7,400,000 were sold at book value and the rest of the noncash assets were sold at a loss of P4,200,000. How much cash will be distributed to the partners?A. 8,000,000B. 4,400,000C. 7,400,000D. 11,800,000 After exhausting the noncash assets of the partnership, assuming all partners has personal assets more than their personal liabilities. How much cash must be invested by the partners to satisfy the claims of the outside creditors and to pay the amount due to the partner/s? A.3,680,000B. 4,480,000C. 4,360,000D. 3,800,000 If C received P2,255,000, How much was…

Answer 2

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 16, Problem 16.14P

To determine

Installment liquidation: takes place for several months to complete, and periodic or installment payments are made to the partners during the liquidation period because they require funds for personal purposes. Most partnership liquidations take place over an extended period in order to obtain the largest possible amount from realization of the assets.

Instalment liquidations involve a distribution of cash to partners before complete liquidation of assets occurs, they are two methods for ensuring fairness and equality in making cash distributions (1) safe payment schedule and (2) cash distribution plan.

A safe payment schedule determines what amounts may be safely distributed to which partner without violating any of the principles of liquidation.

the statement of partnership realization and liquidation with a safe payment schedule for the two month liquidation period.

Expert Solution & Answer

Explanation of Solution

ABC partnership

Statement of realization and liquidation

From January 1, 20X1 to March 31, 20X1

				Capital
	Cash	Assets	liabilities	A 50%	B 30%	C 20%
Balance before liquidation	18,000	307,000	53,000	88,000	110,000	74,000
Transaction in January
Collection of receivable at loss $15,000	51,000	(66,000)		(7,500)	(4,500)	(3,000)
Sale of inventory at loss $14,000	38,000	(52,000)		(7,000)	(4,200)	(2,800)
Liquidation expenses	(2,000)			(1,000)	(600)	(400)
Share of credit memo			(3,000)	(1,500)	(900)	(600)
Payments to creditors	(50,000)		(50,000)
	55,000	189,000	0	74,000	101,600	68,400
Safe payment schedule 1	(45,000)				(26,600)	(18,400)
	10,000	189,000	0	74,000	75,000	50,000
Transactions February
Liquidation expenses	(4,000)			(2,000)	(1,200)	(800)
	6,000	189,000	0	72,000	73,800	49,200
Safe payment schedule 2	0	0	0	0	0	0
Balance February	6,000	189,000	0	72,000	73,800	49,200
March transactions
Sale of M&Eq at loss	146,000	(189,000)		(21,500)	(12,900)	(8,600)
Liquidation expenses	(5,000)			(2,500)	(1,500)	(1,000)
	147,000	0	0	48,000	59,400	39,600
Payment to partners	(147,000)	0	0	(48,000)	(59,400)	(39,600)
Balance March 31	0	0	0	0	0	0

Safe payment schedule for the month:

	A 50%	B 30%	C 20%
Schedule 1 January
Capital balances	74,000	101,600	68,400
Possible losses:
Other assets and liquidation cost (189,000 + 10,000)	(99,500)	(59,700)	(39,800)
	25,500	41,900	28,600
Absorption of A’s potential deficit	(25,500)
B $25,500 x 3/5		15,300
C 25,500 x 2/5			10,200
	0	26,600	18,400
Schedule 2 February
Capital balances	72,000	73,800	49,200
Possible loss
Other assets and liquidation cost (189,000 + 6,000)	(97,500)	(58,500)	(39,000)
	(25,500)	15,300	10,200
Absorption of A’s potential deficit	25,500
B 25,500 x 3/5		(15,300)
C 25,500 x 2/5			(10,200)
Safe payment February	0	0	0

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Answer 3

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 16, Problem 16.14P

To determine

Installment liquidation: takes place for several months to complete, and periodic or installment payments are made to the partners during the liquidation period because they require funds for personal purposes. Most partnership liquidations take place over an extended period in order to obtain the largest possible amount from realization of the assets.

Instalment liquidations involve a distribution of cash to partners before complete liquidation of assets occurs, they are two methods for ensuring fairness and equality in making cash distributions (1) safe payment schedule and (2) cash distribution plan.

A safe payment schedule determines what amounts may be safely distributed to which partner without violating any of the principles of liquidation.

the statement of partnership realization and liquidation with a safe payment schedule for the two month liquidation period.

Expert Solution & Answer

Explanation of Solution

ABC partnership

Statement of realization and liquidation

From January 1, 20X1 to March 31, 20X1

				Capital
	Cash	Assets	liabilities	A 50%	B 30%	C 20%
Balance before liquidation	18,000	307,000	53,000	88,000	110,000	74,000
Transaction in January
Collection of receivable at loss $15,000	51,000	(66,000)		(7,500)	(4,500)	(3,000)
Sale of inventory at loss $14,000	38,000	(52,000)		(7,000)	(4,200)	(2,800)
Liquidation expenses	(2,000)			(1,000)	(600)	(400)
Share of credit memo			(3,000)	(1,500)	(900)	(600)
Payments to creditors	(50,000)		(50,000)
	55,000	189,000	0	74,000	101,600	68,400
Safe payment schedule 1	(45,000)				(26,600)	(18,400)
	10,000	189,000	0	74,000	75,000	50,000
Transactions February
Liquidation expenses	(4,000)			(2,000)	(1,200)	(800)
	6,000	189,000	0	72,000	73,800	49,200
Safe payment schedule 2	0	0	0	0	0	0
Balance February	6,000	189,000	0	72,000	73,800	49,200
March transactions
Sale of M&Eq at loss	146,000	(189,000)		(21,500)	(12,900)	(8,600)
Liquidation expenses	(5,000)			(2,500)	(1,500)	(1,000)
	147,000	0	0	48,000	59,400	39,600
Payment to partners	(147,000)	0	0	(48,000)	(59,400)	(39,600)
Balance March 31	0	0	0	0	0	0

Safe payment schedule for the month:

	A 50%	B 30%	C 20%
Schedule 1 January
Capital balances	74,000	101,600	68,400
Possible losses:
Other assets and liquidation cost (189,000 + 10,000)	(99,500)	(59,700)	(39,800)
	25,500	41,900	28,600
Absorption of A’s potential deficit	(25,500)
B $25,500 x 3/5		15,300
C 25,500 x 2/5			10,200
	0	26,600	18,400
Schedule 2 February
Capital balances	72,000	73,800	49,200
Possible loss
Other assets and liquidation cost (189,000 + 6,000)	(97,500)	(58,500)	(39,000)
	(25,500)	15,300	10,200
Absorption of A’s potential deficit	25,500
B 25,500 x 3/5		(15,300)
C 25,500 x 2/5			(10,200)
Safe payment February	0	0	0

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Answer 4

Question

Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, and drawings of a partner.

Chapter 16, Problem 16.14P

To determine

Installment liquidation: takes place for several months to complete, and periodic or installment payments are made to the partners during the liquidation period because they require funds for personal purposes. Most partnership liquidations take place over an extended period in order to obtain the largest possible amount from realization of the assets.

Instalment liquidations involve a distribution of cash to partners before complete liquidation of assets occurs, they are two methods for ensuring fairness and equality in making cash distributions (1) safe payment schedule and (2) cash distribution plan.

A safe payment schedule determines what amounts may be safely distributed to which partner without violating any of the principles of liquidation.

the statement of partnership realization and liquidation with a safe payment schedule for the two month liquidation period.

Expert Solution & Answer

Explanation of Solution

ABC partnership

Statement of realization and liquidation

From January 1, 20X1 to March 31, 20X1

				Capital
	Cash	Assets	liabilities	A 50%	B 30%	C 20%
Balance before liquidation	18,000	307,000	53,000	88,000	110,000	74,000
Transaction in January
Collection of receivable at loss $15,000	51,000	(66,000)		(7,500)	(4,500)	(3,000)
Sale of inventory at loss $14,000	38,000	(52,000)		(7,000)	(4,200)	(2,800)
Liquidation expenses	(2,000)			(1,000)	(600)	(400)
Share of credit memo			(3,000)	(1,500)	(900)	(600)
Payments to creditors	(50,000)		(50,000)
	55,000	189,000	0	74,000	101,600	68,400
Safe payment schedule 1	(45,000)				(26,600)	(18,400)
	10,000	189,000	0	74,000	75,000	50,000
Transactions February
Liquidation expenses	(4,000)			(2,000)	(1,200)	(800)
	6,000	189,000	0	72,000	73,800	49,200
Safe payment schedule 2	0	0	0	0	0	0
Balance February	6,000	189,000	0	72,000	73,800	49,200
March transactions
Sale of M&Eq at loss	146,000	(189,000)		(21,500)	(12,900)	(8,600)
Liquidation expenses	(5,000)			(2,500)	(1,500)	(1,000)
	147,000	0	0	48,000	59,400	39,600
Payment to partners	(147,000)	0	0	(48,000)	(59,400)	(39,600)
Balance March 31	0	0	0	0	0	0

Safe payment schedule for the month:

	A 50%	B 30%	C 20%
Schedule 1 January
Capital balances	74,000	101,600	68,400
Possible losses:
Other assets and liquidation cost (189,000 + 10,000)	(99,500)	(59,700)	(39,800)
	25,500	41,900	28,600
Absorption of A’s potential deficit	(25,500)
B $25,500 x 3/5		15,300
C 25,500 x 2/5			10,200
	0	26,600	18,400
Schedule 2 February
Capital balances	72,000	73,800	49,200
Possible loss
Other assets and liquidation cost (189,000 + 6,000)	(97,500)	(58,500)	(39,000)
	(25,500)	15,300	10,200
Absorption of A’s potential deficit	25,500
B 25,500 x 3/5		(15,300)
C 25,500 x 2/5			(10,200)
Safe payment February	0	0	0

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Answer 5

Chapter 16, Problem 16.14P

To determine

Installment liquidation: takes place for several months to complete, and periodic or installment payments are made to the partners during the liquidation period because they require funds for personal purposes. Most partnership liquidations take place over an extended period in order to obtain the largest possible amount from realization of the assets.

Instalment liquidations involve a distribution of cash to partners before complete liquidation of assets occurs, they are two methods for ensuring fairness and equality in making cash distributions (1) safe payment schedule and (2) cash distribution plan.

A safe payment schedule determines what amounts may be safely distributed to which partner without violating any of the principles of liquidation.

the statement of partnership realization and liquidation with a safe payment schedule for the two month liquidation period.

Expert Solution & Answer

Explanation of Solution

ABC partnership

Statement of realization and liquidation

From January 1, 20X1 to March 31, 20X1

				Capital
	Cash	Assets	liabilities	A 50%	B 30%	C 20%
Balance before liquidation	18,000	307,000	53,000	88,000	110,000	74,000
Transaction in January
Collection of receivable at loss $15,000	51,000	(66,000)		(7,500)	(4,500)	(3,000)
Sale of inventory at loss $14,000	38,000	(52,000)		(7,000)	(4,200)	(2,800)
Liquidation expenses	(2,000)			(1,000)	(600)	(400)
Share of credit memo			(3,000)	(1,500)	(900)	(600)
Payments to creditors	(50,000)		(50,000)
	55,000	189,000	0	74,000	101,600	68,400
Safe payment schedule 1	(45,000)				(26,600)	(18,400)
	10,000	189,000	0	74,000	75,000	50,000
Transactions February
Liquidation expenses	(4,000)			(2,000)	(1,200)	(800)
	6,000	189,000	0	72,000	73,800	49,200
Safe payment schedule 2	0	0	0	0	0	0
Balance February	6,000	189,000	0	72,000	73,800	49,200
March transactions
Sale of M&Eq at loss	146,000	(189,000)		(21,500)	(12,900)	(8,600)
Liquidation expenses	(5,000)			(2,500)	(1,500)	(1,000)
	147,000	0	0	48,000	59,400	39,600
Payment to partners	(147,000)	0	0	(48,000)	(59,400)	(39,600)
Balance March 31	0	0	0	0	0	0

Safe payment schedule for the month:

	A 50%	B 30%	C 20%
Schedule 1 January
Capital balances	74,000	101,600	68,400
Possible losses:
Other assets and liquidation cost (189,000 + 10,000)	(99,500)	(59,700)	(39,800)
	25,500	41,900	28,600
Absorption of A’s potential deficit	(25,500)
B $25,500 x 3/5		15,300
C 25,500 x 2/5			10,200
	0	26,600	18,400
Schedule 2 February
Capital balances	72,000	73,800	49,200
Possible loss
Other assets and liquidation cost (189,000 + 6,000)	(97,500)	(58,500)	(39,000)
	(25,500)	15,300	10,200
Absorption of A’s potential deficit	25,500
B 25,500 x 3/5		(15,300)
C 25,500 x 2/5			(10,200)
Safe payment February	0	0	0

Answer 6

Chapter 16, Problem 16.14P

To determine

Installment liquidation: takes place for several months to complete, and periodic or installment payments are made to the partners during the liquidation period because they require funds for personal purposes. Most partnership liquidations take place over an extended period in order to obtain the largest possible amount from realization of the assets.

Instalment liquidations involve a distribution of cash to partners before complete liquidation of assets occurs, they are two methods for ensuring fairness and equality in making cash distributions (1) safe payment schedule and (2) cash distribution plan.

A safe payment schedule determines what amounts may be safely distributed to which partner without violating any of the principles of liquidation.

the statement of partnership realization and liquidation with a safe payment schedule for the two month liquidation period.

Expert Solution & Answer

Explanation of Solution

ABC partnership

Statement of realization and liquidation

From January 1, 20X1 to March 31, 20X1

				Capital
	Cash	Assets	liabilities	A 50%	B 30%	C 20%
Balance before liquidation	18,000	307,000	53,000	88,000	110,000	74,000
Transaction in January
Collection of receivable at loss $15,000	51,000	(66,000)		(7,500)	(4,500)	(3,000)
Sale of inventory at loss $14,000	38,000	(52,000)		(7,000)	(4,200)	(2,800)
Liquidation expenses	(2,000)			(1,000)	(600)	(400)
Share of credit memo			(3,000)	(1,500)	(900)	(600)
Payments to creditors	(50,000)		(50,000)
	55,000	189,000	0	74,000	101,600	68,400
Safe payment schedule 1	(45,000)				(26,600)	(18,400)
	10,000	189,000	0	74,000	75,000	50,000
Transactions February
Liquidation expenses	(4,000)			(2,000)	(1,200)	(800)
	6,000	189,000	0	72,000	73,800	49,200
Safe payment schedule 2	0	0	0	0	0	0
Balance February	6,000	189,000	0	72,000	73,800	49,200
March transactions
Sale of M&Eq at loss	146,000	(189,000)		(21,500)	(12,900)	(8,600)
Liquidation expenses	(5,000)			(2,500)	(1,500)	(1,000)
	147,000	0	0	48,000	59,400	39,600
Payment to partners	(147,000)	0	0	(48,000)	(59,400)	(39,600)
Balance March 31	0	0	0	0	0	0

Safe payment schedule for the month:

	A 50%	B 30%	C 20%
Schedule 1 January
Capital balances	74,000	101,600	68,400
Possible losses:
Other assets and liquidation cost (189,000 + 10,000)	(99,500)	(59,700)	(39,800)
	25,500	41,900	28,600
Absorption of A’s potential deficit	(25,500)
B $25,500 x 3/5		15,300
C 25,500 x 2/5			10,200
	0	26,600	18,400
Schedule 2 February
Capital balances	72,000	73,800	49,200
Possible loss
Other assets and liquidation cost (189,000 + 6,000)	(97,500)	(58,500)	(39,000)
	(25,500)	15,300	10,200
Absorption of A’s potential deficit	25,500
B 25,500 x 3/5		(15,300)
C 25,500 x 2/5			(10,200)
Safe payment February	0	0	0

Answer 7

Chapter 16, Problem 16.14P

To determine

Installment liquidation: takes place for several months to complete, and periodic or installment payments are made to the partners during the liquidation period because they require funds for personal purposes. Most partnership liquidations take place over an extended period in order to obtain the largest possible amount from realization of the assets.

Instalment liquidations involve a distribution of cash to partners before complete liquidation of assets occurs, they are two methods for ensuring fairness and equality in making cash distributions (1) safe payment schedule and (2) cash distribution plan.

A safe payment schedule determines what amounts may be safely distributed to which partner without violating any of the principles of liquidation.

the statement of partnership realization and liquidation with a safe payment schedule for the two month liquidation period.

Answer 8

Expert Solution & Answer

Explanation of Solution

ABC partnership

Statement of realization and liquidation

From January 1, 20X1 to March 31, 20X1

				Capital
	Cash	Assets	liabilities	A 50%	B 30%	C 20%
Balance before liquidation	18,000	307,000	53,000	88,000	110,000	74,000
Transaction in January
Collection of receivable at loss $15,000	51,000	(66,000)		(7,500)	(4,500)	(3,000)
Sale of inventory at loss $14,000	38,000	(52,000)		(7,000)	(4,200)	(2,800)
Liquidation expenses	(2,000)			(1,000)	(600)	(400)
Share of credit memo			(3,000)	(1,500)	(900)	(600)
Payments to creditors	(50,000)		(50,000)
	55,000	189,000	0	74,000	101,600	68,400
Safe payment schedule 1	(45,000)				(26,600)	(18,400)
	10,000	189,000	0	74,000	75,000	50,000
Transactions February
Liquidation expenses	(4,000)			(2,000)	(1,200)	(800)
	6,000	189,000	0	72,000	73,800	49,200
Safe payment schedule 2	0	0	0	0	0	0
Balance February	6,000	189,000	0	72,000	73,800	49,200
March transactions
Sale of M&Eq at loss	146,000	(189,000)		(21,500)	(12,900)	(8,600)
Liquidation expenses	(5,000)			(2,500)	(1,500)	(1,000)
	147,000	0	0	48,000	59,400	39,600
Payment to partners	(147,000)	0	0	(48,000)	(59,400)	(39,600)
Balance March 31	0	0	0	0	0	0

Safe payment schedule for the month:

	A 50%	B 30%	C 20%
Schedule 1 January
Capital balances	74,000	101,600	68,400
Possible losses:
Other assets and liquidation cost (189,000 + 10,000)	(99,500)	(59,700)	(39,800)
	25,500	41,900	28,600
Absorption of A’s potential deficit	(25,500)
B $25,500 x 3/5		15,300
C 25,500 x 2/5			10,200
	0	26,600	18,400
Schedule 2 February
Capital balances	72,000	73,800	49,200
Possible loss
Other assets and liquidation cost (189,000 + 6,000)	(97,500)	(58,500)	(39,000)
	(25,500)	15,300	10,200
Absorption of A’s potential deficit	25,500
B 25,500 x 3/5		(15,300)
C 25,500 x 2/5			(10,200)
Safe payment February	0	0	0

Answer 9

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Answer 10

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Answer 11

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