Problem 2

Assets
Balances before liq 1,690,000
Offset the loans from partners
1,690,000

AUGUST
Balances
Sale of Assets
Loss on Sale (1,690,000-100,000)

Allocation of Loss in Insolvent Partner

Allocation of Loss on Insolvent Partner

Safe Payment

September
Balances
Sale of Assets-August
Safe Payment-August
Opening Balance
Sale of Assets-September
Loss on Sale (1,590,000-250,000)
Balances after Loss
Allocation of Loss in Insolvent Partner
Safe Payment-September

OCTOBER
Balances
Sale of Assets-August
Safe Payment-August
Sale of Assets-September
Safe Payment-September
Opening Balance
Sale of Assets-October
Loss on Sale (1,340,000-400,000)
Safe Payment-September

NOVEMBER
Balances
Sale of Assets-August
Safe Payment-August
Sale of Assets-September
Safe Payment-September
Sale of Assets-October
Safe Payment-October
Opening Balance
Sale of Assets-November
Loss on Sale (940,000-100,000)
Safe Payment-September
 Loans Capital
RL JD PX RL
215,000 240,000 30,000 610,000
-215,000 -240,000 -30,000 215,000
0 0 0 825,000

Capital
Cash Assets RL(5%) JD(3%)
1,690,000 825,000 600,000
100,000 -1,690,000
-79,500 -47,700
100,000 0 745500 552300
-208,250 -124,950
100,000 0 -537,250 427350
537,350 -537,250
100,000 0 109,900

Capital
Cash Assets RL(5%) JD(3%)

1,690,000 825,000 600,000

100,000 -100,000
-100,000 -100,000
0 1590000 825000 500000
2,500,000 -1,590,000
-67,000 -40,200
2,500,000 0 758000 459800
-211,375 -126,825
2,500,000 0 546625 332975

Capital
Cash Assets RL(5%) JD(3%)
1,690,000 825,000 600,000
100,000 -100,000 -100,000
-100,000
250,000 -250,000
-250,000 -650,875 -395,525
0 1340000 174125 104475
400,000 -1,340,000
-47,000 -28,200
 400,000 0 127125 76275

Capital
Cash Assets RL(5%) JD(3%)
1,690,000 825,000 600,000
100,000 -100,000 -100,000
-100,000
250,000 -250,000
-250,000 -650,875 -395,525
400,000 -400,000
-400,000 -127,125 -76,275
0 940000 47000 28200
100,000 -940,000
-42,000 -25,000
100,000 0 5000 3200
 MULTIPLE CHOICE
1. D
Capital 2. C
JD PX 3. A
360,000 235,000 4. B
240,000 30,000 5. B
600,000 265,000

Capital
PX(2%)
365,000

-31,800
333200
-333,200
0

Capital
PX(2%)

365,000

365000

-26,800
338200
-338,200
0

Capital
PX(2%)
365,000

365,000

-18,800
 346200

Capital
PX(2%)
365,000

-346,200
18800

-16,800
2000