INSTALLMENT LIQUIDATION Initial Disposal of Non-cash Assets 1.

Sale of non-cash assets and distribution of gain or loss on realization according totheir profit and loss ratio. 2.Payments of liquidation expenses and unrecorded liabilities if any. 3.Payment of partnership liabilities 4.Payment to partners Succeeding Sale of Non-Cash Assets 1.Sale of non-cash assets and distribution of gain or loss on realizationaccording. to their profit and loss ratio. 2.Payments of liquidation expenses and unrecorded liabilities if any. 3.Payment of partnership liabilities (unpaid balance) 4.Payment to partners Final Sale of Non-cash Assets 1.Sale of non-cash assets and distribution of gain or loss on realization according totheir profit and loss ratio. 2.Payments of liquidation expenses and unrecorded liabilities if any. 3.In case of capital deficiency: a.Solvent partner/s 1)Apply right of offset 2)Additional investment b. Insolvent partner/s 1) Apply right of offset 2) Absorption of loss by solvent partners 4.Final CASH settlement to partners COMPUTATION OF SAFE PAYMENTS 1.Compute the Total Partners Interest (Capital + Loan Balance) 2.Distribution of possible loss to partners: a.Total amount of unsold non-cash assets; b.Cash withheld to pay for liquidation expenses and any p o s s i b l e unrecorded liabilities; 3.Additional loss to partners to eliminate any capital deficiency.