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PartnershipLiquidation Prob1 ROCES

The document outlines the liquidation of a partnership between four partners (A, B, C, D) from January to May. It shows the partnership's cash balances, non-cash assets, liabilities, and payments made to partners each month as assets were realized and liabilities paid. By May, all assets had been liquidated and payments made.

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Kyla Roxas
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58 views8 pages

PartnershipLiquidation Prob1 ROCES

The document outlines the liquidation of a partnership between four partners (A, B, C, D) from January to May. It shows the partnership's cash balances, non-cash assets, liabilities, and payments made to partners each month as assets were realized and liabilities paid. By May, all assets had been liquidated and payments made.

Uploaded by

Kyla Roxas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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A,B,C and D Partnership

Statement of Realization and Liquidation


January 20x4 to May 20x4

Cash Non-cash assets Liabilities A, Loan


Balances before liquidation 181,800 84,000 6,000
JANUARY
-Realization 72,000 -90,000
-Payment of expenses -1,200
-Payment of liab -66,000 -66,000
Balances after January 4,800 91,800 18,000 6,000
FEBRUARY
-Realization 21,600 -30,000
-Payment of expenses -1,320
-Payment of liab -18,000 -18,000
Balances before payment to partners 7,080 61,800 6,000
Payment to partners (Sch. 1) -5,280
Balances after February 1,800 61,800 6,000
MARCH
-Realization 19,200 -24,000
-Payment of expenses -1,440
Balances before payment to partners 19,560 37,800 6,000
Payment to partners (Sch. 2) -18,360 -2,736
Balances after March 1,200 37,800 3,264
APRIL
-Realization 6,000 -19,800
-Payment of expenses -4,800
Balances before payment to partners 2,400 18,000 3,264
Payment to partners -1,800 -720
Balances after April 600 18,000 2,544
MAY
-Realization 2,400 -18,000
-Payment of expenses -960
Balances before offsetting 1,440 2,544
Offset deficit vs loan -1,728
Balances before payment 2,040 816
Payment to partners -2,040 -816

A,B, C and D Partnership


Cash Payment Priority Program
January 20x4

Interests

A, Capital B, Capital C, Capital D, Capital


40% 20% 20% 20%
Balances before liquidation:
Loans 6,000 3,000
Capital 26,400 25,800 20,400 16,200
Total Interests 32,400 25,800 20,400 19,200
Divide by:P&L % 40% 20% 20% 20%
Loss absorption abilities 81,000 129,000 102,000 96,000
Priority I -27,000
81,000 102,000 102,000 96,000
Priority II -6,000 -6,000
81,000 96,000 96,000 96,000
Priority III -15,000 -15,000 -15,000
81,000 81,000 81,000 81,000
d D Partnership
lization and Liquidation
0x4 to May 20x4

D, Loan A, Capital (40) B, Capital (20) C, Capital (20) D, Capital (20)


3,000 26,400 25,800 20,400 16,200

-7,200 -3,600 -3,600 -3,600


-480 -240 -240 -240

3,000 18,720 21,960 16,560 12,360

-3,360 -1,680 -1,680 -1,680


-528 -264 -264 -264

3,000 14,832 20,016 14,616 10,416


-5,280
3,000 14,832 14,736 14,616 10,416

-1,920 -960 -960 -960


-576 -288 -288 -288
3,000 12,336 13,488 13,368 9,168
-3,000 -5,688 -5,568 -1,368
12,336 7,800 7,800 7,800

-5,520 -2,760 -2,760 -2,760


-1,920 -960 -960 -960
4,896 4,080 4,080 4,080
-360 -360 -360
4,896 3,720 3,720 3,720

-6,240 -3,120 -3,120 -3,120


-384 -192 -192 -192
-1,728 408 408 408
1,728
408 408 408
-408 -408 -408

Payments

A, Capital B, Capital C, Capital D, Capital


40% 20% 20% 20% TOTAL

5,400 5,400

1,200 1,200 2,400

3,000 3,000 3,000 9,000


0 9,600 4,200 3,000 16,800
A,B,C and D Partnership
Schedule of Safe Payments

Schedule 1 February
Computation of Distribution of Cash on February 20x4

Balances before payment to partners:


Loans
Capital
Total Interest
Restricted Interest for Possible Losses
Unrealized non-cash assets 61,800
Cash withheld 1,800
63,600

Restricted for possible insolvency of A (2:2:2)

Restricted for possible insolvency of D (2:2)

Restricted for possible insolvency of C


Payment to partner

Applied to:
Loans
Capital

Schedule 2 March
Computation of Distribution of Cash on March 20x4

Balances before payment to partners:


Loans
Capital
Total Interest
Restricted Interest for Possible Losses
Unrealized non-cash assets 37,800
Cash withheld 1,200
39,000

Applied to:
Loans
Capital

A, Capital B, Caputal C, Capital D, Capital


40% 20% 20% 20%

Total Interests 32,400 25,800 20,400 19,200


Divide by: P&L % 40% 20% 20% 20%
Loss absorpotion abilities 81,000 129,000 102,000 96,000
Order of Cash Distribution 4 1 2 3
Vulnerability Rankings 1 4 3 2
(1 is most vulnerable)
and D Partnership
e of Safe Payments

A, Capital B, Capital C, Capital D, Capital

6,000 3,000
14,832 20,016 14,616 10,416
20,832 20,016 14,616 13,416

-25,440 -12,720 -12,720 -12,720


-4,608 7,296 1,896 696
4,608 -1,536 -1,536 -1,536
5,760 360 -840
-420 -420 840
5,340 -60
-60 60
5,280

0
5,280
5,280

A, Capital B, Capital C, Capital D, Capital

6,000 3,000
12,336 13,488 13,368 9,168
18,336 13,488 13,368 12,168
-15,600 -7,800 -7,800 -7,800
2,736 5,688 5,568 4,368

2,736 3,000
0 5,688 5,568 1,368
2,736 5,688 5,568 4,368

D, Capital

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