Scribd
Upload
733 views

Partnership Liquidation

The document describes two partnership liquidation scenarios: 1. Lump-sum liquidation of Claire, Karen, and Myrtle partnership with various cases of selling other assets for different amounts. 2. Installment liquidation of ABC partnership where other assets are sold each month over 2 months for cash proceeds that are distributed to partners and creditors.

Uploaded by

Jo Vee Villanueva
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
733 views

Partnership Liquidation

The document describes two partnership liquidation scenarios: 1. Lump-sum liquidation of Claire, Karen, and Myrtle partnership with various cases of selling other assets for different amounts. 2. Installment liquidation of ABC partnership where other assets are sold each month over 2 months for cash proceeds that are distributed to partners and creditors.

Uploaded by

Jo Vee Villanueva
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

LUMP-SUM LIQUIDATION The statement of financial position of Claire, Karen, and Myrtle on July 1, 2012, when they decided

to liquidate is as follows: PBB TEENS PARTNESHIP Statement of Financial Position As of July 1, 2012 ASSETS Cash Other Assets LIABILITIES and PARTNERS EQUITY P 24,000.00 Liabilities P 134,400 408,000.00 Due to Karen 6,000 Due to Myrtle 9,600 Claire, Capital 114,000 Karen, Capital 72,000 Myrtle, Capital 96,000 P 432,000.00 TOTAL P 432,000

TOTAL

The partners share profits and losses in the ratio 2:2:1 Prepare a statement of liquidation for each of the following independent cases: 1. The other assets were sold for P 420,000 2. The other assets were sold for P 300,000 3. The other assets were sold for P 222,000. 4. The other assets were sold for P 204,000. Deficient partner was solvent. 5. The other assets were sold for P 204,000. Deficient partner was insolvent. INSTALLMENT LIQUIDATION The statement of financial position of ABC Partnership on December 31, 2011, when the partners decide to liquidate, is as follows: ASSETS LIABILITIES Cash P 200,000.00 Liabilities P 250,000.00 Other Assets 500,000.00 Due to A 70,000.00 A, Capital (30%) 200,000.00 B, Capital (40%) 30,000.00 C, Capital (30%) 150,000.00 Total P 700,000.00 Total P 700,000.00 Cash is realized for other assets as follows, and amounts realized are distributed at the end of each month to the appropriate parties. 2012 Asset Book Value Cash Proceeds January P 300,000.00 P 260,000.00 February 200,000.00 230,000.00 Prepare a statement of liquidation to summarize the course of liquidation. Provide schedules in support of monthly distribution.

\jrvc\cpa0120456

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy