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    Feb 3, 2011, 07:40 AM
    Installment liquidation
    The December 31, 2009 ledger balances of Reyes, Samson and Toledo, who share profits and losses, 50%, 25%, 25% respectively, appear as follows:

    Cash P19,000
    Acc Rec 197,000
    Allow for Uncollectible Accounts P6,000
    Accounts Payable 77,000
    Toledo, Loan 9,000
    Salary payable to Reyes 6,000
    Reyes, Capital 50,000
    Samson, Capital 28,000
    Toledo, Capital 40,000

    At this date, the firm decided to liquidate and the ensuing activities are:

    Cash collections from customers P112,000 P36,000 P35,000
    Payments in full settlement
    Of liabilities 38,000 38,000 -
    Liquidation expense 4,400 2,800 4,000
    Cash payment to partners 16,000 19,800 remainder

    Instructions:
    1. Prepare the journal entries to record the liquidation of the partnership.
    2. Prepare a statement of liquidation with supporting schedules of cash distributions to partners.

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