Question 1 Able Baker

Balance 79000 140000

Inventory
Loss on realization -8000 -8000
Loss on Plant Asset -92000 -40000
Balance -21000 40000
Loss on Absorption -21000 -14000
Distribution of cash available 0 26000
If the partners agree to distribute the available cash:
A is incorrect because Baker will only receive 26000 not 40667
B is incorrect because the balance of Charlie's capital account will not amount to 59000 immediately after t
C is incorrect because the balance of Charlie's capital account will not amount to 30000 immediately after t
D is correct because the amount that Charlie will receive regarding cash distribution is 23000

Question 2 Which of the following is a characteristic of most partnerships?

A is incorrect because a characteristic of partnership must have division of profits and losses not division of
B is incorrect because a partnership has a limited life not unlimited life
C is incorrect because the first two choices are not a characteristic of partnership
D is incorrect because a partnership has unlimited liability
E is correct becausethere cannot be a partnership without mutual contribution be it of money, property or

Question 3 The amount of cash Johnny should receive on July 31,2003 is:

Cash Accounts receivable Inventories

Balance before liquidation 20000 30000 70000
Collection of receivable 15000 15000
Inventory sold 20000 -70000
Balances 55000 15000 0
Payment to partner -10000
45000 15000 0

Question 4 Which of the following will not result in the dissolution of a partnership?
A is incorrect because 3 and 4 will result in dissolution of a partnership
B is incorrect because 1, 2 and 3 will result in dissolution of a partnership
C is correct because neither 1,2,3 and 4 will not result in dissolution of of a partnership
D is incorrect because 1,2,3 and 4 will result in dissolution of a partnership
E is incorrect because 1 and 2 will result in dissolution of a partnership

Question 5 How much were the noncash assets sold for?

Cash NCA Liablities

Balance before liquidation 125000 1275000 320000
Sale of NCA 410625 -1275000
Balances 535625 0 320000
Payment of liabilities -320000 -320000
 Balances 215625 0 0

Question 6 Using the same data above, what is the amount received by B on February 28,2051?

Cash Other assets Liabilities

Balances 20000000 80000000 50000000
January:
Realization of Assets 50000000 -60000000
Balances 70000000 20000000 50000000
Offset of loan
Balances 70000000 20000000 50000000
Payment of expenses -3000000
Balances 67000000 20000000 50000000
Payment of liabilities -30000000 -30000000
Balances 37000000 20000000 20000000
Payment to partners -15000000
Balances 22000000 20000000 20000000
February:
Realization of remaining assets 25000000 -20000000
Balances
Liquidation expenses
Balances
Final payment to partners

Question 7 In a liquidation, the liabilities of the partnership should be paid:

A is correct because the process of winding u a business normally consists of conversion of assets into cash
B is incorrect because after revaluation of assets there will be adjustmen to value of asset which is not dire
C is incorrect because liabilities must be paid after distribution of gains and losses in the disposal of assets,
D is incorrect because sale of assets must be done first and after that, the liabilities will be paid then

Question 8 If available cash except for a 5,000 contingency fund is distributed immediately, Frank should receive:

Dick Frank Helen

Balances before liquidation 75000 200000 155000
Loan balances -25000 20000
Total partners interest 50000 220000 155000
Possible loss(345000+5000) -70000 -140000 -140000
Balances -20000 80000 15000
Additional loss to Dick, Frank a 20000 -10000 -10000
Payment to partners 0 70000 5000
Question 9 How much cash is to be distributed to HH?

HH II JJ
Capital balances 126000 90000 36000
Add Loan 48000
Total interest 174000 90000 36000
Restricted interest-Possible los 0 0 0
Balances 174000 90000 36000
Additional loss to other partner -36000
Payment to partners 174000 90000 0

Question 10 The amount of cash Johnny should receive on September 30,2004:

Cash Other Assets Loan to Billy

Balances before liquidation 35000 280000 52500
January:
Realization of assets 61250 -280000
Balances 96250 0 52500
Payment of liabilities -61250
Balances 35000 0 52500
Payment to partners -17500
Balances 17500 0 52500

Question 11 The following statements describe a partnership, except:

A is incorrect because letter B is an exception so none of the above is incorrect
B is correct because a partnership may be constituted in any formed, except where immovable property or
C is incorrect because it describe a partnership
D is incorrect because it describe a partnershiP
E is incorrect because it describe a partnership

Question 12 Which ststement below is false?

A is incorrect because the statement is true, that if the partner is insolvent he may use his personal assets t
B is incorrect because the statement is true
C is incorrect because the definiton of marshaling assets is true
D is correct because it is the only false statement amog the choices, since the partnership asset cannot be u
E is incorrect because the statement is true since after the first prriority which is paying to personal credito

Question 13 What amount of cash did A received in the final settlement?

Liabilities A B C
195000 520000 260000 -390000
-195000 195000
715000 260000 -390000
 -292500 -97500 -195000
422500 162500 -585000
0 0 35000
422500 162500 -550000
-412500 -137500 550000
10000 25000 0

Question 14 What is the preferred method of resolving a partner's eficit balance?

A is incorrect because the partners must only contribute personal assets if the partner with deficit balance
B is incorrect because a partner cannot contribute personal assets to cover deficit balance if he is insolvent
C is incorrect because there's no method needed for resolving deficit balance if the partners never have de
D is incorrect because the partnership is separate from the partner with deficit balance and the other partn
E is correct because the partner with deficit balance may contribute personal assets only if he is solvent

Question 15 How would the claim of Nurr and Kelly against Cleamons be ranked in comparison with the claims of Cleam
A is incorrect because first statement is true but the second statement is false
B is incorrect because the whole statement is false
C is incorrect because the first statement is false although the second statement is true
D is correct because the whole statement is true and it is the right order of claims when it comes to marsha
E is incorrect because it is not true that theirclaims can be equal to Cleamons' other creditors

Question 16 If all outside creditors and loans to partners had been paid, how would the balance of the assets be distribu

Cash(ProceeAsset Liabilities
P&L (equally)
Balances before liquidation 240000 70000
Sale of assets and distribution of 195000 -240000
Balances 195000 0 70000
Payment of liabilities -70000 -70000
Balances 125000 0
Payment of loan -20000
Balances 105000
Received assets of AA -30000
Balances 75000

A is incorrect because each partners has different contributed capital so their final balance won't be equal
B is incorrect because the balances are not the correct settlement
C is correct because it is the final settlement and correct balance of each partner
D is incorrect because each partner will only receive 25000 each if the rremaining assets are mentioned to

Question 17 How much was absorbed by Z to eliminate the capital deficiency of Y?

X Y Z
Capital balances 375000 550000 1125000
 Drawing-Credit 36000 24000 17000
Total interest 411000 574000 1142000
Operating loss -84000 -84000 -84000
Balances 327000 490000 1058000

Asset Liabilities X
Balances 2082000 207000 327000
Loss -2082000 -694000
Balances 0 207000 -367000
Offset -102000
0 207000 -469000

Question 18 The partner's capital account is credited in the following cases except when it involves the recording of the
A is incorrect because additiona investment is credited in capital account
B is correct because debit balance of the drawing account at the end of the period since it represent tempo
C is incorrect because share in porfit is credited in capital account as increase in capital
D is incorrect because original investment is normally credited in capital account

Question 19 Under an installment liquidation of the XYZ partnership:

A is incorrect because the use of safe payment schedules is inefficient if numerous installment distributions
B is correct because it is true that cash will be distributed in the P& L sharing ratio as it becomes available w
C is incorrect because although the cash distribution program is viewed as much easier than safe payment
D is incorrect becaue under installment liquidation there can be partial distribution of cash although not all

Question 20 How much is the total book value of the noncash assets?

Cash Other assets Liabilities

Balances 125000 1275000 320000
Sale of NCA 410625 -1275000
Balances 535625 0 320000
Payment of liabilities -320000 -320000
Balances 215625 0

Question 21 What is the amount received by N on January 31, 2051?

Cash Other Assets Liabilities

Balances 20000000 80000000 50000000
January:
Realization of assets 50000000 -60000000
Balances 70000000 20000000 50000000
Offset of loan
Balances 70000000 20000000 50000000
Payment of expenses -3000000
 Balances 67000000 20000000 50000000
Payment of liabilities -30000000 -30000000
Balances 37000000 20000000 20000000
Payment to partners -15000000
Balances 22000000 20000000 20000000
February:
Realization of remaining assets 25000000 -20000000
Balances 47000000 0 20000000
Liquidation expenses -2000000
Balances 45000000 0 20000000
Payment of remaining liabilitie -20000000 -20000000
Balances 25000000 0
Final payment to partners -25000000

Question 22 The amount of cash withheld for anticipated liquidation expense:

CAPITAL
Cash Other assetsLiabilities Denis
72000 35700 120000 132000
192000 -35700 0 -82500
264000 0 120000 49500
-6000 -3000
-32400 -32400 0
225600 0 87600 46500
-207600 -87600 -37500
18000 0 0 9000

Question 23 Using the same data above, what is the total amount of cash withheld on January 31, 2051?

Cash Other assets Liabilities

Balances 20000000 80000000 50000000
January:
Realization of Assets 50000000 -60000000
Balances 70000000 20000000 50000000
Offset of loan
Balances 70000000 20000000 50000000
Payment of expenses -3000000
Balances 67000000 20000000 50000000
Payment of liabilities -30000000 -30000000
Balances 37000000 20000000 20000000
Payment to partners -15000000
Balances 22000000 20000000 20000000

Question 24 In a partnership liquidation, the final cash distribution to the partners should be made in accordance with t
 A is incorrect because final cash distribution can also be made from cash distribution schedule not only from
B is correct because final cash distribution to partners should be made in accordance to the balance of part
C is incorrect because ratio of capital contributions by partners is only needed for allocation of P&L if there
D is incorrect because partners P&L sharing ratio is necessary for cash distribution while liquidating but not

Question 25 How much should Enrico receive upon liquidation of the partnership?

Enrico Ramon Enrico

Capital balances before liquidat 102000 90000
Loans 24000 9000
Total Partners Interest 126000 99000
P&L ratio 0.6 0.4
Loss absorption balance 210000 247500
Allocation 1 -37500
210000 210000
Allocation 2: Further cash distributions are to be made in the P&L ratio

Question 26 How much should Ramon receive upon liquidation of the partnership?

Enrico Ramon Enrico

Capital balances before liquidat 102000 90000
Loans 24000 9000
Total Partners Interest 126000 99000
P&L ratio 0.6 0.4
Loss absorption balance 210000 247500
Allocation 1 -37500
210000 210000
Allocation 2: Further cash distributions are to be made in the P&L ratio

Question 27 Which of the following results in the dissolution of the partnership?

A is incorrect because one of the choices results in dissolution of a partnership
B is incorrect because it pertains to liquidation of partnership
C is incorrect because it refers to admission by purchase which totally do not affect the partnership assets a
D is correct because withdrawal of a partner from partnership will totally lead to dissolution of partnership
E is incorrect because contribution of additional assets to the partnership by an existing partner is just an in

Question 28 What accounting transactions are not recorded by an accountant during liquidation?
A is incorrect because allocation of the resulting gains and losses are recorded by an accountant during liqu
B is incorrect because conversion of assets into cash is recorded by an accountant
C is incorrect because payment of liabilities and expenses is also recorded by an accountant during liquiida
D is correct because an accountant doesn't record settlement of remaining unpaid debts or even the distrib

Question 29 Which of the following statements is false concerning the Schedule of Liquidation?
A is incorrect because the statement regarding Schedule of liquidation is true
B is correct because it is a false statement, frequent reporting by an accountant is often necessary for the p
 C is incorrect because the statement regarding Schedule of liquidation is true
D is incorrect because it is true that Schedule of Liquidation provides update to creditors and partners rega
E is incorrect because the statement is true that liquidation may take considerable length of time to compl

Question 30 The book value of the partnership equity on June 30, 2003 is:

Billy, Capital
Loan to Billy

Johnny, Capital
Johnny, Loan

Marky, Capital
Total Partnership equity

Question 31 For the month of January, how much cash is available for distribution to the partners?

Cash Other Assets Liabilities

Balances 157500 798750 393750
Realization of assets 326250 -382500
Balances 483750 416250 393750
Payment of Liabilities(.80) -315000 -315000
Balances 168750 416250 78750
Liquidation expense -6500
Balances 162250 416250 78750
Payment to partners -83500
Cash Available 78750

Question 32 How much cash was distributed to all partners?

U, Capital 553500
Receivable from U -132000
Total interest 421500
Cash received 438000
Gain of U 16500
P&L 0.5
Gain 33000
Total Capital 1454500
Cash distributed 1487500

Question 33 If available cash except for a 5000 contingency fund is distributed immediately.Dick should receive:

Dick Frank Helen

Balances before liquidation 75000 200000 155000
Loan balances -25000 20000
 Total partners interest 50000 220000 155000
Possible loss(345000+5000) -70000 -140000 -140000
Balances -20000 80000 15000
Additional loss to Dick, Frank a 20000 -10000 -10000
Payment to partners 0 70000 5000

Question 34 The effect of admission of a new partner is:

A is correct because it is impossible to determine from the information given if what would be the effect of
B is incorrect because there's no specification if what kind of admission is given, though this choice is applic
C is incorrect because there's no specification if what kind of admission is given, though this choice is applic
D is incorrect because there's no specification if what kind of admission is given, though this choice is appli

Question 35 A cash distribution plan for the QRS partnership will show that cash available after non-partner liabilities ar

QR RS QS
Balances before liquidation 70000 80000 150000
Loan 50000
Total interest 70000 130000 150000
P&L ratio 0.25 0.25 0.5
Loss absorption balance 280000 520000 300000
Allocation 1 -220000
Balances 280000 300000 300000
Allocation 2 -20000 -20000
Balances 280000 280000 280000

Question 36 What is a marshaling of assets?

A is incorrect because it ust be the order of creditor's rights against the partnership's assets and the person
B is incorrect because it is an order in which claims against the partnership assets will be marshaled not ho
C is incorrect because the statement pertains to cash distribution
D is correct because marshaling of assets is the order of claims against the personal assets of an individual
E is incorrect because obviously it is not related to marshaling of assets

Question 37 Using the same data above, what is the share of A to the maximum possible loss on January 31,2051?

Cash Other Assets Liabilities

Balances 20000000 80000000 50000000
January:
Realization of assets 50000000 -60000000
Balances 70000000 20000000 50000000
Offset of loan
Balances 70000000 20000000 50000000
Payment of expenses -3000000
Balances 67000000 20000000 50000000
 Payment of liabilities -30000000 -30000000
Balances 37000000 20000000 20000000
Payment to partners -15000000
Balances 22000000 20000000 20000000
February:
Realization of remaining assets 25000000 -20000000
Balances 47000000 0 20000000
Liquidation expenses -2000000
Balances 45000000 0 20000000
Payment of remaining liabilitie -20000000 -20000000
Balances 25000000 0
Final payment to partners -25000000

Question 38 How much will Ambo receive upon the partnership's liquidation?

Cash Other Assets Liabilities

Balances before liquidation 52500 426000 150000
Realization of asset 347250 -426000
Balances 399750 0 150000
Payment of liabilities -150000 -150000
Balances 249750 0
Payment to partners -249750

Question 39 If SS received 14400 from the first distribution of cash, how much did TT receive at that time?

RR SS TT
Capital balances 88000 99600 60000
Loan balances 40000
Total interest 128000 99600 60000
P&L ratio 0.5 0.3 0.2
Loss absorption balance 256000 332000 300000
Allocation 1 -32000
Balance 256000 300000 300000
Allocation 2 -44000 -44000
Balance 256000 256000 256000
Allocation 3: P&L ratio

Question 40 How much should be distributed to Dana upon liquidation of the partnership?

Cash Other assets Liabilities

Balance before liquidation 7000 401100 179000
Sale of assets and distribution of 210000 -401100
Balances 217000 0 179000
 Payment of Liabilities -179000 -179000
Balances 38000 0
Additional investment of Ira 10500
Balances 48500 0
Additional loss to partners
Balances 48500 0

Question 41 Is cash available for a 5000 contingency fund is distributed immediately, Helen should receive:

Dick Frank Helen

Balances before liquidation 75000 200000 155000
Loan balances -25000 20000
Total partners interest 50000 220000 155000
Possible loss(345000+5000) -70000 -140000 -140000
Balances -20000 80000 15000
Additional loss to Dick, Frank a 20000 -10000 -10000
Payment to partners 0 70000 5000

Question 42 Which of the following statements is true concerning the distribution of safe payments?
A is incorrect because safe payment is not equal to recorded capital balances of partners with positive capi
B is incorrect because absorption of a partner's deficit balance by partners with positive
C is incorrect because there must be safe payments through a schedule for the distribution of available cas
D is correct because a deficit balance may affect the partnership totally and is considered as loss to the par
E is incorrect because schedule of safe payments will be used depending on the period of installments unti

Question 43 In the settlement of partners, how much cash should Kirk receive?
CAPITAL
Cash Other Asset Liabilities Kirk
0 625500 297000 207000
162000 -625500 -278100
162000 0 297000 -71100
-162000 -162000
0 135000 -71100
135000 135000
-135000 -135000
0 0 63900
63900
63900 0 63900
-63900 -63900

Question 44 If B received a total of 15000 as a result of the liquidation, what was the total amount realized from the sal

B, Capital 157500
Loan -26250
Capital interest 131250
 Cash received 15000
Share on loss 116250
P&L ratio 0.5
Total loss 232500
Book value of assets 682500
Cash realized 450000

Question 45 Non-cash assets invested into a partnership are recorded at:

A is incorrect because the carrying value isn't a priority if ever an agreed value is not present
B is incorrect because there must be an appropriate amount regarding noncash assets, not zero, unless the
C is correct because noncash assets must be recorded at their fair market value if there is an absence of ag
D is incorrect because original cost may be considered as historical cost without depreciation

Question 46 The selling of non-cash assets fr cash in partnership liquidation, any difference between book value and the
A is incorrect because there is no term such as sales difference value in artnership liquidation
B is incorrect because net profit or loss on sale is the amount after sale has its deductions or additions
C is incorrect because it is not the right term for the difference
D is correct because the conversion of noncash assets into cash or the difference between noncash assets a

Question 47 The cash balance after payment of liabilities to outsiders amount to:

Cash Other Assets Liabilities

Balance befeore liquidation 131250 1065000 375000
Realization of assets 868125 -1065000
Balances 999375 0 375000
Payment of liabilities -375000 -375000
Balances 624375 0
Payment to partners -624375

Question 48 If the partnership agreement does not specify hoow profit is to be allocated,profits or losses should be allo
A is incorrect because equal allocation is only applicable if the partners agreed to it
B is correct because if there's no agreement if how profit should be allocated according to their capital con
C is incorrect because ratio of average capital balance is only applicable if the partners agreed to it
D is incorrect because just and equitable allocation is only applicable to industrial partner

Question 49 The main caharacteristic of lump sum liquidation done in one transaction is that all the
A is incorrect because cash available is not distributed immediately in just one transaction because it requi
B is incorrecct because assets have the pssibility to be withheld and not sold immediately for certain purpo
C is incorrect because only liability is stated, omitting the transaction which should be done regarding asset
D is correct because the information stated all the main characteristic of lump sum liquidation done in one

Question 50 Which statement below is correct?

A is incorrect because there might be loss sharing agreement even if there's no existence of income sharing
B incorrect because settlement of liabilities must come first before settlement of cash even if it is a limited
C is correct because if there's no statement of investment from partner with deficit balance the partners w
D is incorrect because not all cash payment are made using income-sharing ratio, it can also be based on al
E is incorrect because loan receivable must be deducted to capital accounts while loan payable is the one w
 Charlie
140000
-60000
-4000
-30000
30000
-7000
23000

amount to 59000 immediately after the distribution of cash and inventory items
amount to 30000 immediately after the distribution of cash and inventory items
sh distribution is 23000

on of profits and losses not division of profits only

partnership

ntribution be it of money, property or industry of partners to a common fund

10000
CAPITAL
Plant Assets Liabilities Loan, Johnny Billy Johnny Marky
60000 35000 25000 40000 50000 30000

0 0 0
60000 35000 25000 40000 50000 30000
-10000
60000 35000 25000 40000 40000 30000

f of a partnership

CAPITAL CAPITAL PAYMENTS TO

Chris Ann Nine Chris Ann Nine Chris
350000 450000 280000 375000 450000 280000
-216093.75 0 0 -25000 20000 0
133906.25 450000 280000 350000 470000 280000
0.25 0.4 0.35
 133906.25 450000 280000 1400000 1175000 800000
-225000 0 0 56250
1175000 1175000 800000
-375000 -375000 0 93750
800000 800000 800000 150000

ruary 28,2051?

CAPITAL CAPITAL
B,Loan A,Loan N(.20) B(.30) A(.50) N(.20)
5000000 15000000 20000000 20000000 -10000000 Balance 30000000
loan balan -10000000
-2000000 -3000000 -5000000 Total Partn 20000000
5000000 15000000 18000000 17000000 -15000000 P/L Ratio 0.2
-15000000 15000000 Loss absorp100000000
5000000 0 18000000 17000000 0 Allocation -16666667
-600000 -900000 -1500000 Balance 83333333
5000000 0 17400000 16100000 -1500000 Allocation -73333333
Balance 10000000
5000000 0 17400000 16100000 -1500000 Allocation 3: Further cash distributi
-8000000 -7000000
5000000 0 9400000 9100000 -1500000

1000000 1500000 2500000

0 10400000 10600000 1000000
-400000 -600000
0 10000000 10000000 1000000
0 -10000000 -10000000

sists of conversion of assets into cash first, next is payment of liabilities before distribution of remaining cash among the partners as final s
men to value of asset which is not directly related to payment of liabilities in a liquidation
s and losses in the disposal of assets, not before
the liabilities will be paid then

mediately, Frank should receive:

 CAPITAL
Liabilities Johnny, loanBilly(.20) Johnny(.30) Marky(.50)
61250 43750 122500 87500 52500

43750 65625 109375

61250 43750 166250 153125 161875
-61250
0 43750 166250 153125 161875
-17500
0 43750 166250 135625 161875

except where immovable property or real rights are contributed, in which case, the law requires that a public instrumentt be executed

lvent he may use his personal assets to settle claims of his personal creditors

nce the partnership asset cannot be used to pay the partner's personal liability based on accounting entity assumption
ty which is paying to personal creditors, the next priority must regard to partnership creditors if a partner still has remaining personal asse

D
-585000

-585000
 585000
0

ets if the partner with deficit balance is insolvent

cover deficit balance if he is insolvent
balance if the partners never have deficit balance since there's nothing to resolve
th deficit balance and the other partner who are solvent must be the one to shoulder the deficiency if the partner with deficienccy is inso
ersonal assets only if he is solvent

comparison with the claims of Cleamons' other creditors?

statement is true
der of claims when it comes to marshaling of assets
eamons' other creditors

d the balance of the assets be distributed assuming that CC had already received assets with a value of 30000?

CAPITAL
AA,Loan AA BB CC

20000 70000 30000 50000

-15000 -15000 -15000
20000 55000 15000 35000

20000 55000 15000 35000

-20000
0 55000 15000 35000
-30000
0 55000 15000 5000

so their final balance won't be equal to each other although they divide the P/L equally

e rremaining assets are mentioned to be divided equally

 Y Z
490000 1058000
-694000 -694000
-204000 364000
-102000
-204000 262000

when it involves the recording of the:

of the period since it represent temporary withdrawals or as a decrease in capital caused by the share in loss
ncrease in capital

if numerous installment distributions are to be made to partners

sharing ratio as it becomes available whether with the usage of safe payment schedule or through cash distribution program
ed as much easier than safe payment schedule due to immediate visibility of cash to be distributed to partners, it also has instances where
al distribution of cash although not all noncash assets are yet converted into cash but it must still be persisted for noncash assets to be sol

CAPITAL
Chris Ann Nine
350000 450000 280000
-216093.75 0 0
133906.25 450000 280000

133906.25 450000 280000

CAPITAL
B,Loan A,Loan N(.20) B(.30) A(.50)
5000000 15000000 20000000 20000000 -10000000

-2000000 -3000000 -5000000

5000000 15000000 18000000 17000000 -15000000
-15000000 15000000
5000000 0 18000000 17000000 0
-600000 -900000 -1500000
 5000000 0 17400000 16100000 -1500000

5000000 17400000 16100000 -1500000

-8000000 -7000000
5000000 9400000 9100000 -1500000

1000000 1500000 2500000

5000000 10400000 10600000 1000000
-400000 -600000 -1000000
5000000 10000000 10000000 0

5000000 10000000 10000000

-5000000 -10000000 -10000000

CAPITAL
Lyndon Sarah
84000 93000
-41250 -41250
42750 51750
-1500 -1500
0 0
41250 50250
-36750 -45750
4500 4500

d on January 31, 2051?

CAPITAL
B,Loan A,Loan N(.20) B(.30) A(.50)
5000000 15000000 20000000 20000000 -10000000

-2000000 -3000000 -5000000

5000000 15000000 18000000 17000000 -15000000
-15000000 15000000
5000000 0 18000000 17000000 0
-600000 -900000 -1500000
5000000 0 17400000 16100000 -1500000

5000000 0 17400000 16100000 -1500000

-8000000 -7000000
5000000 0 9400000 9100000 -1500000

should be made in accordance with the:

ash distribution schedule not only from safe payments computations
e in accordance to the balance of partner's capital accounts
needed for allocation of P&L if there's no mentioned P&L ratio agreement
distribution while liquidating but not in the final payment

Ramon Enrico Ramon

Available cash(68500)
Allocation 1 15000
Allocation 2 32100 21400
Balance 32100 36400

15000

Ramon Enrico Ramon

Available cash(68500)
Allocation 1 15000
Allocation 2 32100 21400
Balance 32100 36400

15000

do not affect the partnership assets and total capital

ally lead to dissolution of partnership
ship by an existing partner is just an investment and will only lead to asset revaluation

ng liquidation?
ecorded by an accountant during liquidation
n accountant
rded by an accountant during liquiidation
aining unpaid debts or even the distribution of any remaininng assets because its priority is to realize NCA and distribute cash after

Liquidation?

ccountant is often necessary for the purpose of updating what is the cash available to be distributed
update to creditors and partners regarding the resluts of the process of dissolution
considerable length of time to complete, depending on the period of time it will end

to the partners?
Capital
J K
315000 247500
0 0
315000 247500

315000 247500
0 0
315000 247500

mediately.Dick should receive:

 n given if what would be the effect of admission of new partner because it wasn't mentioned if the admission is by purchase or by investm
n is given, though this choice is applicable for admission by investment
n is given, though this choice is applicable for admission by purchase
on is given, though this choice is applicable for admission by investment

vailable after non-partner liabilities are paid will go to:

QR RS QS

55000

5000 10000

e partnership's assets and the personal assets of the individual partners

ership assets will be marshaled not how partnership assets are liquidated

t the personal assets of an individual partner

ossible loss on January 31,2051?

CAPITAL
B,Loan A,Loan N(.20) B(.30) A(.50)
5000000 15000000 20000000 20000000 -10000000

-2000000 -3000000 -5000000

5000000 15000000 18000000 17000000 -15000000
-15000000 15000000
5000000 0 18000000 17000000 0
-600000 -900000 -1500000
5000000 0 17400000 16100000 -1500000
 5000000 17400000 16100000 -1500000
-8000000 -7000000
5000000 9400000 9100000 -1500000

1000000 1500000 2500000

5000000 10400000 10600000 1000000
-400000 -600000 -1000000
5000000 10000000 10000000 0

5000000 10000000 10000000

-5000000 -10000000 -10000000

CAPITAL
Berto, Loan Ambo Berto Carlo
30000 99000 100500 99000
-39375 -23625 -15750
30000 59625 76875 83250

30000 59625 76875 83250

-30000 -59625 -76875 -83250

TT receive at that time?

RR SS TT SS Cash received 14400

Allocation 1 9600
SS received to satisfy 4800
Total cash received to 8000
TT received 3200

9600

13200 8800
22800 8800

CAPITAL
Tyron Dana Ira
105000 94500 29400
-81900 -54600 -54600
23100 39900 -25200
 23100 39900 -25200
10500
23100 39900 -14700
-8820 -5880 14700
14280 34020 0

ly, Helen should receive:

of safe payments?
alances of partners with positive capital balances
tners with positive
le for the distribution of available case in order to assume possible losses
ly and is considered as loss to the partnership
ing on the period of installments until all noncash assets are sold

CAPITAL
Wayne
121500
-185400
-63900

-63900

-63900
63900
0

he total amount realized from the sale of the non-cash assets?

ed value is not present
g noncash assets, not zero, unless there's no noncash asset at all
rket value if there is an absence of agreement at agreed value when recording
st without depreciation

ifference between book value and the cash proceeds received is called?
n artnership liquidation
e has its deductions or additions

e difference between noncash assets and its book value is referred to as realization which may either result to a gain/loss on realization

CAPITAL
B,loan A B D
75000 247500 251250 247500
0 0 0
75000 247500 251250 247500

75000 247500 251250 247500

-75000 -247500 -251250 -247500

ocated,profits or losses should be allocated

rs agreed to it
located according to their capital contribution as the next option
le if the partners agreed to it
to industrial partner

that all the

just one transaction because it requires proper allocation according to order of priority
ot sold immediately for certain purposes
which should be done regarding assets and payment to partners
of lump sum liquidation done in one transaction

here's no existence of income sharing

ttlement of cash even if it is a limited liability partnership
er with deficit balance the partners with no deficiency shall absorb the deficiency as additional loss to their capital by their income sharing
haring ratio, it can also be based on allocation of payments when it comes to installment liquidation
counts while loan payable is the one which should be added
PAYMENTS TO
Ann Nine
 150000
150000 0

CAPITAL Payments to
B(.30) A(.50) N B A
20000000 -10000000
5000000 15000000
25000000 5000000
0.3 0.5
83333333 10000000
3333333.4
83333333 10000000
-73333333 14666666.6 22000000
10000000 10000000 18000000 22000000
3: Further cash distributions are to be made in the P/L ratio

ng the partners as final settlement

umentt be executed

remaining personal assets

with deficienccy is insolvent
also has instances where determination of gain/loss related to sale of individual assets during liquidation is difficult to be seen
noncash assets to be sold
ribute cash after
y purchase or by investment
in/loss on realization
by their income sharing ratio
ult to be seen