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On June 1, 2001, Brian and Carmina, partners of B and C Partnership, decided to liquidate their partnership. At the time of liquidation, the balance sheet accounts consisted of cash - P25,000; noncash assets - P600,000; liabilities P125,000; Brian, capital - P225,000; Carmina, capital - P275,000. Brian and Carmina share profits and losses in the ratio of 3:2, respectively. Brian is personally insolvent. Noncash assets were sold for P350,000.
Instructions:
Question 1: Prepare statement of partnership liquidation.
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