HOLMES AND KAISER PARTNERSHIP

STATEMENT OF PARTNERSHIP LIQUIDATION

FOR THE PERIOD JANUARY 1, 20X2 TO JANUARY 31, 20X0
70% 30%
non cash priority Holmes Holmes Kaiser
cash assets liability Loas Capital Capital
Balances January 1,20x2 10,000 100,000 40,000 10,000 25,000 35,000
sale of inventory 25,000 (30,000) (3,500) (1,500)
35,000 70,000 40,000 10,000 21,500 33,500
sale of plant assets 30,000 (40,000) (7,000) (3,000)
65,000 30,000 40,000 10,000 14,500 30,500
collection of receivables 22,000 (30,000) (5,600) (2,400)
87,000 - 40,000 10,000 8,900 28,100
payment of liabilities (40,000) (40,000)
47,000 - - 10,000 8,900 28,100
payment of Holmes loans (10,000) (10,000)
37,000 - - - 8,900 28,100
final distribution to partners (37,000) (8,900) (28,100)
- - - - - -
 DURO KEMP ROTH
STATEMENT OF PARTNERSHIP LIQUIDATION
FOR THE PERIOD JANUARY 1, 20X2 TO APRIL 20X2

noncash priority 50% Kemp

cash assets liabilities Duro Cap. Loan
(5,000) balances January 1 240,000 1,160,000 500,000 340,000 20,000
offset Roth loan (40,000)
(10,000) write off of goodwill (40,000) (20,000)
collection of receivables 200,000 (200,000)
(8,000) sale of inventory items 200,000 (160,000) 20,000
predist blc january 31 640,000 720,000 500,000 340,000 20,000
january distribution
creditors (500,000) (500,000)
Kemp (120,000) (20,000)
balances february 1 20,000 720,000 - 340,000 -
equipment sale 60,000 (80,000) (10,000)
sale of inventory items 180,000 (240,000) (30,000)
liquidation expenses (4,000) (2,000)
liability discovered 8,000 (4,000)
predist blc february 28 256,000 400,000 8,000 294,000 -
febr dist (ex17-7)
creditors (8,000) (8,000)
partners (228,000) (84,000)
blc March 1 20,000 400,000 - 210,000 -
sale of land 150,000 (100,000) 25,000
liquidation expenses (5,000) (2,500)
predist blc march 31 165,000 300,000 - 232,500 -
march dist (145,000) (72,500)
balances april 1 20,000 300,000 - 160,000 -
sale of equipment 150,000 (220,000) (35,000)
write off of receivable (80,000) (40,000)
predist blc april 30 170,000 - - 85,000 -
april distribution (170,000) (85,000)
liquidation completed - - - - -
 DURO KEMP ROTH
SCHEDULE OF SAFE PAYMENT
JANUARY 31, 20X2
50% 30%
30% 20% possible Duro Kemp
Kemp Cap. Roth Cap. losses capital cap+loans
340,000 200,000
(40,000) partners equities January 31 20x2 340,000 360,000
(12,000) (8,000) possible losses on non cash 720,000 (360,000) (216,000)
(20,000) 144,000
12,000 8,000 40,000 possible losses on contingencies:
340,000 160,000 cash withheld 20,000 (10,000) (6,000)
(30,000) 138,000
possible loss fr Duro (60:40) 30,000 (18,000)
(100,000) - 120,000
240,000 160,000
(6,000) (4,000) (20,000)
(18,000) (12,000) (60,000)
(1,200) (800) DURO KEMP ROTH
(2,400) (1,600) SCHEDULE OF SAFE PAYMENT
212,400 141,600 FEBRUARY 28,20X2
50% 30%
possible Duro Kemp
(86,400) (57,600) losses capital cap+loans
126,000 84,000
15,000 10,000 50,000 partners equities Feb 28, 20x2 294,000 212,400
(1,500) (1,000) possible losses on non cash 400,000 (200,000) (120,000)
139,500 93,000 94,000 92,400
(43,500) (29,000) possible losses on contingencies:
96,000 64,000 cash withheld 20,000 (10,000) (6,000)
(21,000) (14,000) (70,000) 84,000 86,400
(24,000) (16,000)
51,000 34,000
(51,000) (34,000)
- -
 20%
Roth
capital

160,000
(144,000)
16,000

(4,000)
12,000
(12,000)
-

20%
Roth
capital

141,600
(80,000)
61,600

(4,000)
57,600
ILLUSTRATION OF INSTALLMENT LIQUIDATION

The Partnership of D,K,R is to be liquidated as soon as possible after Dec 31 20x1,

and all cash on hand except for a $20,000 contingency balance is to be distributed at
the end of each month until the liquidation is completed.

A summary of liquidation Events is as follows:

January 20x2- the loan to Roth is offset against his capital balance, the goodwill is
written off, $200,000 is collected on account, inventory items that cost $160,000 are
sold for $200,000, and cash is distributed

February 20x2-Equipment with a book value of $80,000 is sold for $60,000, the
remaining inventory items are sold for $180,000, liquidation expenses of $4,000 are
paid, a liability of $8,000 is discovered, and cash is distributed.

March 20x2-the land is sold for $150,000, liquidation expenses of $5,000 are paid,
and cash is distributed.

April 20x2-Additional equipment is sold for $150,000, the remaining equipment and
receivables are written off, and all cash on hand is distributed in final liquidation of the
partnership