LA CONSOLACION UNIVERSITY PHILIPPINES A.F.

ISIP
PARTNERSHIP AND CORPORATION ACCOUNTING LECTURE 06 – LIQUIDATION BY INSTALLMENT

Xenia, Yolly and Zerna are business partners sharing profits and losses equally. They decide to liquidate their partnership.
Prior to the liquidation, the partnership statement of financial position on June 30, 2019 is presented below:

Assets Liabilities & Equity

Cash P5,000 Liabilities P40,000
Other assets 155,000 Xenia capital 30,000
Yolly capital 40,000
Zerna capital 50,000
Total P160,000 Total P160,000

The following data relate to the realization of other assets:

Book Value Cash Realized Loss

July P80,000 P65,000 P15,000
August 42,000 24,000 18,000
September 33,000 12,000 21,000
Total P155,000 P101,000 P54,000

Prepare statement of liquidation by installment wherein each partner has sufficient interest to absorb possible loss.