A B

Beg. Capital 300,000.00 200,000.00

Add: Net Profit 125,000.00 125,000.00
Less: Withdrawals (50,000.00) .
Ending Capital 375,000.00 325,000.00
Gain or Loss on realization 5,000.00 5,000.00
Payment Liquidation Exp (300,000.00) (300,000.00)

Balances 80,000.00 30,000.00

Additional Contribution by C
Balances 80,000.00 30,000.00
Additional Loss for Dist (6,666.67) (6,666.67)
Balances 73,333.33 23,333.33
Additional Loss for Dist (3,333.33) (3,333.33)
Final Balances 70,000.00 20,000.00

Assumption:
C - Solvent
D - Insolvent
TOTAL INTEREST
CAPITAL XX
Loan Receivable (XX)
Loan Payable xx
Partners Interest XX

50% 30% 20%

Partner's Int
A B C
Total Interest 280,000.00 470,000.00 190,000.00
Divide By: 50% 30% 20%
Loss Absorption Balan 560,000.00 1,566,666.67 950,000.00
Priority 1 (616,666.67)
560,000.00 950,000.00 950,000.00
Priority 2 (390,000.00) (390,000.00)
560,000.00 560,000.00 560,000.00

390,000.00 390,000.00
C D TOTAL P&L Ratio Equally
150,000.00 250,000.00 900,000.00 BEG. CAP
125,000.00 125,000.00 500,000.00 NP
(50,000.00) (100,000.00) 500,000.00 Withdrawals
225,000.00 275,000.00 1,900,000.00 Step 1
5,000.00 5,000.00 20,000.00 Step 2
(300,000.00) (300,000.00) (1,200,000.00) Step 3
Step 4
Step 5
(70,000.00) (20,000.00) 720,000.00 Step 6
70,000.00 70,000.00
- (20,000.00) 790,000.00
(6,666.67) 20,000.00 - 6,666.67
(6,666.67) - 790,000.00
6,666.67 - -
- - 790,000.00

Additional Contribution (to the extend of his/her Net Personal Assets.

Absorb by the remaining partner

Cash Payment
A B C

185,000.00

117,000.00 78,000.00
- 302,000.00 78,000.00
NCA 180,000.00
Inventories 50,000.00
A/R 30,000.00
PPE 100,000.00

Sale of NCA 200,000.00

Gain on Sale on Realization 20,000.00

PROBLEM 3-1
A) Henry Isaac
Capital Balances before Liquidation 80,000.00 110,000.00
Loans/Receivables from Partners - -
Total Interest 80,000.00 110,000.00
Distribution of G/L on Realization (20,000.00) (40,000.00)
Payment of Liquidation Expenses (5,000.00) (10,000.00)
Cash Paid to Partners 55,000.00 60,000.00

B) Henry Isaac
Capital Balances before Liquidation 80,000.00 110,000.00
Loans/Receivables from Partners - -
Total Interest 80,000.00 110,000.00
Distribution of G/L on Realization (44,000.00) (88,000.00)
Payment of Liquidation Expenses (5,000.00) (10,000.00)
Cash Paid to Partners 31,000.00 12,000.00

C) Henry Isaac
Capital Balances before Liquidation 80,000.00 110,000.00
Loans/Receivables from Partners - -
Total Interest 80,000.00 110,000.00
Distribution of G/L on Realization (56,000.00) (112,000.00)
Payment of Liquidation Expenses (5,000.00) (10,000.00)
Balances 19,000.00 (12,000.00)
Additional Contribution 12,000.00
Final Balances/Distribution to Partners 19,000.00 -

PROBLEM 3-2
Hanky Ide
Capital Balances before Liquidation 4,000.00 (60,000.00)
Loans/Receivables from Partners - -
Total Interest 4,000.00 (60,000.00)
Distribution of G/L on Realization - -
Payment of Liquidation Expenses - -
Balances 4,000.00 (60,000.00)
Additional Contribution 40,000.00
Balances 4,000.00 (20,000.00)
Additional Loss (7,500.00) 20,000.00
Balances (3,500.00) -
Additional Contribution 2,000.00 -
Balances (1,500.00) -
Additional Loss 1,500.00
Cash Distribution - -

Hanky Ide
PERSONAL ASSETS 74,000.00 120,000.00
LESS: PERSONAL LIABILITIES 72,000.00 80,000.00
NET PERSONAL ASSETS 2,000.00 40,000.00
Solvent Solvent

PROBLEM 3-3
A) Jade Kale
Capital Balances before Liquidation 79,000.00 140,000.00
Loans/Receivables from Partners - -
Total Interest 79,000.00 140,000.00
Distribution of G/L on Realization (32,000.00) (32,000.00)
Adj of Invt into FV (8,000.00) (8,000.00)
Payment of Liquidation Expenses - -
Balances 39,000.00 100,000.00
Partial Settlement
Final Balances/Cash Dist/Cash Paid to Part 39,000.00 100,000.00

B) Jade Kale
Capital Balances before Liquidation 79,000.00 140,000.00
Loans/Receivables from Partners - -
Total Interest 79,000.00 140,000.00
Distribution of G/L on Realization 8,000.00 8,000.00
Adj of Invt into FV (8,000.00) (8,000.00)
Payment of Liquidation Expenses - -
Balances 79,000.00 140,000.00
Partial Settlement
Final Balances/Cash Dist/Cash Paid to Part 79,000.00 140,000.00

c) Jade Kale
Capital Balances before Liquidation 79,000.00 140,000.00
Loans/Receivables from Partners - -
Total Interest 79,000.00 140,000.00
Distribution of G/L on Realization (84,000.00) (84,000.00)
Adj of Invt into FV (8,000.00) (8,000.00)
Payment of Liquidation Expenses - -
Balances (13,000.00) 48,000.00
Additional loss 13,000.00 (8,666.67)
Balances - 39,333.33
Partial Settlement
Final Balances/Cash Dist/Cash Paid to Part - 39,333.33
PROBLEM 3-4
A) Attitude Behaviour
Capital Balances before Liquidation 30,000.00 75,000.00
Loans/Receivables from Partners (5,000.00)
Total Interest 30,000.00 70,000.00
Distribution of G/L on Realization (18,285.71) (24,380.95)
Liquidation Expenses (2,142.86) (2,857.14)
Capital Balance 9,571.43 42,761.90
Addional Loss (3,171.43) (4,228.57)
Final Balances 6,400.00 38,533.33

Cash 237,000.00
Loss on Realization 128,000.00
Other Assets

Liquidation Expenses 15,000.00

Cash

Liabilities 153,000.00
Cash

Income Summary 143,000.00

Loss on Realization
Liquidation Expenses

Attitude, Capital 20,428.57

Behaviour, Capital 27,238.10
Character, Capital 40,857.14
Discipline, Capital 54,476.19
Income Summary

Attitude, Capital 3,171.43

Behaviour, Capital 4,228.57
Discipline, Capital 8,457.14
Character, Capital

Attitude, Capital 6,400.00

Behaviour, Capital 43,533.00
Discipline, Capital 27,066.67
Receivable from Partner - Behaviour
Cash
PROBLEM 3-5 Proceeds Book Value
Inventories 40,000.00 60,000.00
Fixed Assets 24,500.00 35,000.00
Fixed Assets 40,000.00 35,000.00
104,500.00 130,000.00

Beginning Cash 58,000.00

Proceeds from Sale of Assets 64,500.00
Payment of Liabilities (96,000.00)
Cash Available for Distribution 26,500.00

A) Oakley Perth
Capital Balances before Liquidation 24,000.00 26,000.00
Loans/Receivables from Partners (8,000.00) -
Total Interest 16,000.00 26,000.00
Distribution of G/L on Realization (10,200.00) (6,375.00)
Liquidation Expenses - -
Capital Balance 5,800.00 19,625.00
Partial Settlement
Final Balances/ Cash Available for Dist 5,800.00 19,625.00

***Assumption Proceeds Book Value

Inventories 40,000.00 60,000.00
Fixed Assets 24,500.00 35,000.00
64,500.00 95,000.00
Jacob
140,000.00
- Selling Price of NCA 200,000.00
140,000.00 NCA per Book 300,000.00
(40,000.00) Loss on Realization (100,000.00)
(10,000.00)
90,000.00

Jacob
140,000.00
-
140,000.00 Selling Price of NCA 80,000.00
(88,000.00) NCA per Book 300,000.00
(10,000.00) Loss on Realization (220,000.00)
42,000.00

Jacob
140,000.00
-
140,000.00 Selling Price of NCA 20,000.00
(112,000.00) NCA per Book 300,000.00
(10,000.00) Loss on Realization (280,000.00)
18,000.00

18,000.00

Jen
106,000.00
- Selling Price of NCA
106,000.00 NCA per Book
- Loss on Realization -
-
106,000.00

106,000.00
(12,500.00)
93,500.00
-
93,500.00
(1,500.00)
 92,000.00

Jen
56,000.00
60,000.00
(4,000.00)
Insolvent

Lane
140,000.00 Selling Price of NCA 150,000.00
- NCA per Book 230,000.00
140,000.00 Loss on Realization (80,000.00)
16,000.00
(4,000.00) Fair Value of Inv 60,000.00
- Book Value of Inv 80,000.00
152,000.00 Loss on Realization (20,000.00)
(60,000.00)
92,000.00

Lane
140,000.00 Selling Price of NCA 250,000.00
- NCA per Book 230,000.00
140,000.00 Gain on Realization 20,000.00
4,000.00
(4,000.00) Fair Value of Inv 60,000.00
- Book Value of Inv 80,000.00
140,000.00 Loss on Realization (20,000.00)
(60,000.00)
80,000.00

Lane
140,000.00 Selling Price of NCA 20,000.00
- NCA per Book 230,000.00
140,000.00 Loss on Realization (210,000.00)
(42,000.00)
(4,000.00) Fair Value of Inv 60,000.00
- Book Value of Inv 80,000.00
94,000.00 Loss on Realization (20,000.00)
(4,333.33)
89,666.67
(60,000.00)
29,666.67
Character Discipline
25,000.00 90,000.00

25,000.00 90,000.00 215,000.00

(36,571.43) (48,761.90) (128,000.00) ???
(4,285.71) (5,714.29) (15,000.00)
(15,857.14) 35,523.81 72,000.00
15,857.14 (8,457.14)
- 27,066.67 128,000.00

365,000.00

15,000.00

153,000.00

128,000.00
15,000.00

143,000.00

15,857.14

5,000.00
72,000.00
Gain/ (Loss)
(20,000.00)
(10,500.00)
5,000.00
(25,500.00)

Quito
64,000.00
(14,000.00)
50,000.00
(8,925.00)
-
41,075.00
(40,000.00)
1,075.00 26,500.00

Gain/ (Loss) UNSOLD ASSETS - MONTH 1

(20,000.00) -
(10,500.00) 35,000.00
(30,500.00) Actual Loss on Realization
(35,000.00) Theoretical Loss on Relazation
Plant Assets

Inventories

Plant Assets

Inventories

Plant Assets

Inventories
Selling Price of NCA 237,000.00
NCA per Book 365,000.00
Loss on Realization (128,000.00)