The following balances of AJD Partnership on 2020 before liquidation process are as follows: Liabilities P50,000 Allen, Capital (25%) 250,000 Jaypee, Capital (25%) 300,000 Deo, Capital (50%) 100,000 Cash available before liquidation is P20,000. During the year, the following realizations occurred: a. On September, fifty percent of the total noncash assets were sold at a loss of P100,000; b. On October, twenty-five percent of the total noncash assets were sold at their book values, and; c. On November, the remaining noncash assets were written-off as a loss. All partners are personally solvent, with the exception of Deo who is solvent up to P10,000 only at the date of the last installment liquidation. Required: Prepare a statement of liquidation with safe payments schedule.
The following balances of AJD
Liabilities P50,000
Allen, Capital (25%) 250,000
Jaypee, Capital (25%) 300,000
Deo, Capital (50%) 100,000
Cash available before liquidation is P20,000. During the year, the following realizations occurred:
a. On September, fifty percent of the total noncash assets were sold at a loss of P100,000;
b. On October, twenty-five percent of the total noncash assets were sold at their book values, and;
c. On November, the remaining noncash assets were written-off as a loss.
All partners are personally solvent, with the exception of Deo who is solvent up to P10,000 only at the date of the last installment liquidation.
Required: Prepare a statement of liquidation with safe payments schedule.
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