cash Non-cash liabilities Arena, Dulay, Laurente,

asset Capital Capital Capital

Profit and 1/3 1/3 1/3
loss ratio
Balances 50,000 2,350,000 400,000 900,000 500,000 600,000
before
liquidation
Sale of non- 2,650,000 (2,350,000) 100,000 100,000 100,000
cash asset
and
distribution
of gains
balances 2,700,000 400,000 1,000,000 600,000 700,000
Payment to 400,000 (400,000)
liabilities to
Outsiders
balances 2,300,000 1,000,000 600,000 700,000
Payment to (2,300,000) (1,000,000) (600,000) (700,000)
partners

Arena, Dulay and Laurente Capital

Statement of Liquidation

June 30, 2019

1. Sale of all non-cash assets.

Cash 2,650,000

Non-cash assets 2,350,000

Gains of Realization 300,000

To record sales of non-cash assets with gains on realization

2. Distribution of gain on realization to the partners.

Gains of Realization 300,000

Arenas, Capital 100,000

Dulay, Capital 100,000

Laurente, Capital 100,000

To record distribution of gain on realization

3. Payment of the liabilities.

Liabilities 0

Cash 0

4. Distribution of cash to the partners.

Arenas, Capital 1,000,000

Dulay, Capital 600,000

Laurente, Capital 700,000

Cash 2,300,000

To record distribution of cash to partners

Miranda, Leon, and Estoque

Statement of Liquidation

March 31, 2019

cash Non-cash Liabilities Miranda, Leon, Capital Estoque,

asset Capital Capital
Profit and 1/3 1/3 1/3
loss ratio
Balances 150,000 2,600,000 750,000 400,000 600,000 1,000,000
before
liquidation
 Sale of non- 2,150,000 (2,600,000) (150,000) (150,000) (150,000)
cash asset
and
distribution
of loss
balances 2,300,000 750,000 250,000 450,000 850,000
Payment of (750,000) (750,000)
liabilities to
Outsiders
balances 1,550,000 250,000 450,000 850,000
Payment to (1,550,000) (250,000) (450,000) (850,000)
partners

1. Sale of all non-cash assets.

Cash 2, 150,000

Loss on Realization 450,000

Non-cash assets 2,600,000

To record sale of non-cash asset

2. Distribution of loss on realization to the partners.

Miranda, Capital 150,000

Leon, Capital 150,000

Estoque, Capital 150,000

Loss on realization 450,000

To record the distrbution of loss on realization

3. Payment of the liabilities.

Liabilities 750,000

Cash 750,000

To record payment of liabilities

4. Distribution of cash to the partners.

Miranda, Capital 250,000

Leon, Capital 450,000

Estoque, Capital 850,000

Cash 1,550,000

To record the distriibution of cash