Case 1.

ABCD PARTNERSHIP
STATEMENT OF LIQUIDATION
September 1,2011

Other Accounts Alpha Delta Alpha,Capital Bravo, Capital Charlie, Capital Delta, Capital
Cash Assets Payable Loan Loan 40% 30% 20% 10%
Balances before 40,000 210,000 55,000 15,000 10,000 50,000 45,000 40,000 35,000
realization

a) Sale of
other asset and
division of gain 250,000 210,000 16,000 12,000 8,000 4,000

Balances after sale 290,000 55,000 15,000 10,000 66,000 57,000 48,000 39,000

b) Payment of
liabilities 80,000 55,000 15,000 10,000

Balances after
payment 210,000 66,000 57,000 48,000 39,000

c) Distribution of
cash to partners 210,000 66,000 57,000 48,000 39,000

page 1 of 6
Journal Entries Case 1.
a) Sale and Division of Gain
Cash 250,000
Other Assets 210,000
Alpha, Capital 16,000
Bravo, Capital 12,000
Charlie Capital 8,000
Delta, Capital 4,000
To record the sale and distribution of gain to partners

b) Payment of Liabilities
Accounts payable 55,000
Alpha, Loan 15,000
Delta, Loan 10,000
Cash 80,000
To record the payment of liabilities

c) Final Cash Distribution to partners

Alpha, Capital 66,000
Bravo, Capital 57,000
Charlie Capital 48,000
Delta, Capital 39,000
Cash 210,000
To record final cash distribution to the partners

page 2 of 6
Case 2.
ABCD PARTNERSHIP
STATEMENT OF LIQUIDATION
September 1,2011

Other Accounts Alpha Delta Alpha,Capital Bravo, Capital Charlie, Capital Delta, Capital
Cash Assets Payable Loan Loan 40% 30% 20% 10%
Balances before 40,000 210,000 55,000 15,000 10,000 50,000 45,000 40,000 35,000
realization

a) Sale of
other asset and
division of loss 80,000 210,000 52,000 39,000 26,000 13,000

Balances after sale 120,000 55,000 15,000 10,000 2,000 6,000 14,000 22,00

b) Payment of
liabilities 80,000 55,000 15,000 10,000

Balances after
payment 40,000 2,000 6,000 14,000 22,000

c) Bravo, Charlie and

Delta to absorb
capital def. of Alpha 40,000 2,000 1,000 667 333

Balances after
absorption of capital
deficiency of Alpha 40,000 5,000 13,333 21,667

d) Distribution of
cash to partners 40,000 5,000 13,333 21,667
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Journal Entries Case 2.

a) Sale of Assets and Division of Loss
Cash 80,000
Alpha, Capital 52,000
Bravo, Capital 39,000
Charlie Capital 26,000
Delta, Capital 13,000
Other assets 4,000
To record the sale of assets and distribution of loss to partners 210,000

b) Payment of Liabilities
Accounts payable 55,000
Alpha, Loan 15,000
Delta, Loan 10,000
Cash 80,000
To record the payment of liabilities

c)Absorption of Alpha's Capital Deficiency by Bravo, Charlie and Delta

Bravo, Capital 1,000
Charlie ,Capital 667
Delta, Capital 333
Alpha, Capital 2,000
To record final absortion of Alpha's capital deficiency by Bravo, Charlie and Delta.

c)Final Cash Distribution to Partners

Bravo, Capital 5,000
Charlie ,Capital 13,333
Delta, Capital 21,667
Cash 40,000
To record final cash distribution to the partners.
 page 4 to 6

Case 3.
ABCD PARTNERSHIP
STATEMENT OF LIQUIDATION
September 1- November 30, 2011

Other Accounts Alpha Delta 40% 30% 20% 10%

Cash Assets Payable Loan Loan Alpha, Capital Bravo, Capital Charlie, Capital Delta, Capital
Balances before liquid 40,000 210,000 55,000 15,000 10,000 50,000 45,000 40,000 35,000
September Realization of
other assets and
distribution of loss 32,000 50,000 7,000 5,250 3,500 1,750
Balances 72,500 160,000 55,000
15,000 10,000 43,000 39,750 36,500 33,250
Payment of Liabilities 55,000 55,000
Balances 17,500 160,000 15,000 10,000 43,000 39,750 36,500 33,250
Cash Distribution-Sept
(Sched 1) 15,000 10,000 5,000
Balances 2,500 160,000 15,000 43,000 39,750 36,500 28,250
October realization of
other assets and
distribution of gains 70,000 60,000 4,000 3,000 2,000 1,000
Balances 72,500 100,000 15,000 47,000 42,250 38,500 29,250
Cash Distribution-Oct
(Sched 2) 62,500 15,000 3,000 9,250 16,500 18,250
Balances 10,000 100,000 44,000 33,000 22,000 11,000
November realization of
other assets and
distribution of loss 80,000 100,000 8,000 6,000 4,000 2,000
Balances P 90,000 P 36,000 P27,000 P 18,000 P 9,000
Cash Distribution - Nov 90,000 36,000 27,000 18,000 9,000
 page 5 of 6

Schedule 1.
Cash Distribution Schedule
September 30,2011
Alpha (40%) Bravo (30%) Charlie (20%) Delta (10%)
Capital balance before distribution 43,000 39,750 36,500 33,250
Add: Loan Balances 15,000
Total Partners' Interest 58,000 39,750 36,500 43,250
Restricted Interest: Theoretical loss
of P 162,500 if withheld cash and
remaining assets were lost and not realized 65,000 48,750 32,500 16,250
Balances 7,000 9,000 4,000 27,000
Additional possible loss to charlie and
Delta if Alpha and Bravo could not make
good their capital deficiencies 7,000 9,000 10,667 5,333
Balances 6,667 21,667
Additional possible loss to Delta if
Charlie can't make good his capital deficiency 6,667 6,667
Free Interest: P- P- P- P-
Payment to be applied to loan
Payment to be applied to capital

Schedule 2.
Cash Distribution Schedule
October 31,2011
Alpha (40%) Bravo (30%) Charlie (20%) Delta (10%)
Capital balance before distribution 47,000 42,250 38,500 29,250
Add: Loan Balances 15,000
Total Partners' Interest 62,000 42,250 38,500 29,250
Restricted Interest: Theoretical loss
of P 110,000 if withheld cash and
remaining assets were lost and not realized 44,000 33,000 22,000 11,000
Free Interest: P 18,000 P 9,250 P 16,500 P 18,250
Payment to be applied to loan 15,000
Payment to be applied to capital 3,000 9,250 16,500 18,250