Orian, Tejero, and Lacson are partners in the OTL Electric Company and share profits in ratio of 5:3:2. On June 30, 2011, they decided to liquidate the business. The statement of financial position at...

Extracted text: Orian, Tejero, and Lacson are partners in the OTL Electric Company and share profits in ratio of 5:3:2. On June 30, 2011, they decided to liquidate the business. The statement of financial position at that date is as follows: Cash P 30,000 Liabilities P 40,000 Tejero, Loan Orian, Capital Orian, Loan 15,000 10,000 Non-cash Assets 135,000 80,000 Tejero, Capital Lacson, Capital Total Equities 36,000 14,000 Total Assets P180,000 P180,000 The non-cash assets are sold for P100,000. Rather than require payments, all partners agreed to offset the receivable from Orian against his capital credit. Required: 1. Prepare a statement of liquidation. 2. Prepare the journal entries to account for the liquidation.