The ZODIAC Partnership has suffered financially due to poor results of operations for the past three years. Lyon, Virgo, and Aquarius share profits and losses 40%, 20%, and 40%, respectively. Disillusioned by the setback, the partners are considering the liquidation of their partnership. The following condensed partnership statement of financial position as of December 31, 2020, the end of the calendar year. As of December 31,, 2020. Zodiac PartnershipStatement of financial position. Assets; Cash: ₱30000, Inventories:₱40000, Furniture and Fixture: ₱300000, Total Assets: ₱370000.  Liabilities and partner's equity: accounts payable:₱49000, lyon loan:₱20000 Lyon Capital:₱95000 Virgo Capital:₱100000, Aqarius capital:₱106000, Total Liabilities and Partner's equity:₱370000.  Additional information: All of

The ZODIAC Partnership has suffered financially due to poor results of operations for the past three years. Lyon, Virgo, and Aquarius share profits and losses 40%, 20%, and 40%, respectively. Disillusioned by the setback, the partners are considering the liquidation of their partnership. The following condensed partnership statement of financial position as of December 31, 2020, the end of the calendar year. As of December 31,, 2020. Zodiac PartnershipStatement of financial position. Assets; Cash: ₱30000, Inventories:₱40000, Furniture and Fixture: ₱300000, Total Assets: ₱370000.  Liabilities and partner's equity: accounts payable:₱49000, lyon loan:₱20000 Lyon Capital:₱95000 Virgo Capital:₱100000, Aqarius capital:₱106000, Total Liabilities and Partner's equity:₱370000.  Additional information: All of the non-cash assets are sold for P40,000. Lyon and Virgo are personally solvent while Aquarius is personally insolvent. Required: A. Prepare the statement of liquidation B. Prepare the journal entries related to the liquidation process