A numerical method based on the finite element method is presented for simulating the two-dimensional transient motion of a viscous liquid with free surfaces. For ease of numerical treatment of the free surface expressed by a multiple-valued function, the marker particle method is employed. Numerous virtual particles are spread over all regions occupied by liquid. They move about on a fixed finite element mesh with the liquid velocity at their positions. These particles contribute nothing to the dynamics of the liquid and only serve as markers of liquid regions. The velocity field within liquid regions is calculated by solving the Navier-Stokes equations and the equation of continuity by the finite element method based on quadrilateral elements. A detailed discussion is given of the methodological problems arising in the implementation of the marker particle method on an unstructured finite element mesh and of the solutions to these problems. The proposed method is demonstrated on three sample problems: the broken dam problem, the impact of a falling liquid drop on a still liquid and the entry of a rigid block into water. Good agreement has been obtained in the comparison of the present numerical results with available experimental data.