Liquidation
2
Liquidation- TERMINATION of the partnership 2 kinds of liquidation 1. Lumpsum method ALL ASSETS are SOLD ONE TIME BIG TIME. 2. Installment method/ Piecemeal method Assets are sold one by one, or literally by installment. GENERAL RULES: FOR LUMPSUM cash Assets liabili ties loan capital capital Capital Balances before realizat ion xxx xxx xxx xxx xxx xxx Xxx Sale of assets xxx (xxx) Xxx/ (xxx) Xxx/ (xxx) Xxx/ (xxx) Balance xxx - xxx xxx Xxx/ (xxx) Xxx/ (xxx) Xxx/ (xxx) Payment of liabilit ies (xxx) (xxx) Balance xxx - xxx Xxx/ (xxx) Xxx/ (xxx) Xxx/ (xxx) IF MAY DEFICIT tapo may LOAN balance and partner (xxx) xxx Balance xxx - Xxx/ (xxx) Xxx/ (xxx) Xxx/ (xxx) If may deficit pa din yun xxx (xxx) (Xxx)
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Transcript of Liquidation
Liquidation- TERMINATION of the partnership2 kinds of liquidation1. Lumpsum methodALL ASSETS are SOLD ONE TIME BIG TIME. 2. Installment method/ Piecemeal methodAssets are sold one by one, or literally by installment.
GENERAL RULES:FOR LUMPSUMcashAssetsliabilitiesloancapitalcapitalCapital
Balances before realizationxxxxxxxxxxxxxxxxxxXxx
Sale of assetsxxx(xxx)Xxx/(xxx)Xxx/(xxx)Xxx/(xxx)
Balancexxx-xxxxxxXxx/(xxx)Xxx/(xxx)Xxx/(xxx)
Payment of liabilities(xxx)(xxx)
Balancexxx-xxxXxx/(xxx)Xxx/(xxx)Xxx/(xxx)
IF MAY DEFICIT tapo may LOAN balance and partner(xxx)xxx
Balancexxx-Xxx/(xxx)Xxx/(xxx)Xxx/(xxx)
If may deficit pa din yun insolvent partner xxx(xxx)(Xxx)
Balancexxx-Xxx/(xxx)Xxx/(xxx)
Distribution of cash to remaining partners(xxx)(xxx)(xxx)
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Please remember that this is just a pro-forma for lump sum
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