None On January 1, the partners of Mori, Lux, and Khan (who share profits and losses in the ratio of 5:3:2, respectively) decide to terminate operations and liquidate their partnership. The trial balance at this date follows:CashGeneral JournalAccounts receivable)CreditInventoryMachinery and equipment, netMori, loanAccounts payableLux, loanMori, capitalLux, capitalKhan, capitalTotalsDebit$ 24,00078,00064,000227,00042,000$77,00032,000124,00096,00080.000$400,000$409,000The partners plan a program of piecemeal conversion of the partnership's assets to minimize liquidation losses. All available cash, less an amount retained to provide for future expenses, is to be distributed to the partners at the end of each month. A summary of the liquidation transactions follows:JanuaryCollected $57,000 of the accounts receivable; the balance is deemed uncollectibleFebruaryMarchReceived $44,000 for the entire inventoryPaid $8,000 in liquidation expenses.Paid $66,000 to the outside creditore after offsetting a $9,000 credit memorandum received by the partnership on January11.Retained $16,000 cash in the business at the end of January to cover liquidation expenses. The remainder is distributed tothe partners.Paid $9,000 in liquidation expensesRetained $4,000 cash in the business at the end of the month to cover additional liquidation expensesReceived $152,000 on the sale of at machinery and equipmentPaid $11,000 in final liquidation expensesRetained no cash in the business.Required:Prepare proposed schedules of liquidation on January 31, February 28, and March 31 to determine the safe payments made to the partners at the end of each of these three months.Complete this question by entering your answers in the tabs below.JanuaryFebruaryMarchPrepare proposed schedule of liquidation to determine the safe payments made to the partners at the end of January,Note: Amounts to be deducted should be entered with a minus signMORI, LUX, AND KHAN PARTNERSHIPProposed Schedule of Liquidation.January 311Balances January 1Collected accounts receivableSold inventoryPaid liquidation expensesPaid accounts payableSubtotal (actual balances)Maximum loss on assetsMaximum liquidation expensesSubtotal (potential balances)Allocation of deficit capital balanceSafe payments to partners - January 31$NoncashAssetsLiabilitiesMort, Capital Lux, Capitaland LoanKhan,and Loan50%30%Capital 20%000000S00000$.0$0 $0 $February >

Liquidation of Partnership refers to a decision may be made to cease trading and wind up the…

minimize liquidation losses ved by the partnership on January January to cover liquidation expenses is distributed to of liquidation on January 31, February 2 and March 31 to determine the saf Complete this question by entering your answers in the tabs below made to the partners at the end of January Amounts to be deducte AND KHAN PARTNERSHIP Balances January Noncash Liabilities or Capital Lux, Capital Khan sand Loan and Loan