Partnership Liquidation

1. Lumpsum – use adjusted capital, no more adjustment for asset & liabilities

Adjustment to capital:
 Withdrawals (temporary & permanent)- close to capital
 Profit or loss
 Temporary or nominal accounts

FORMULA OF LUMPSUM:
X, Loan X,Capital Y,Capital
LOAN/CAPITAL xx xx xx
G/L xx/(xx) xx/(xx)
TOTAL xx xx xx
ABSORB LOAN IF MAYDA (xx) (xx) (xx)
TOTAL xx xx xx

NCA xx
Proceeds (xx)
G/L xx/(xx) - distribute to the partner

Cash xx
Proceeds xx
Liquidating Expense (xx)
Liability (xx)
Cash distribution xx

FORMULA OF INSTALLMENT:

X, Capital Y, Capital Z, Capital

CAPITAL xx xx xx
+Loan Payable xx xx xx
-Loan Receivable (xx) (xx) (xx)
Total xx xx xx
P/L ratio x% x% x%
Total xx xx xx
Less: ibani para (xx) (xx) (xx)
magsame amount
Same amount na dapat xx xx xx

Cash xx
Proceeds xx
Liquidating Expense (xx)
Liability (xx)
Cash withheld (xx)
Total xx
Less: (xx) han amount ha igbaw
Amount xx  distribute to the partner