PROBLEM NO.

CASE 1: ASSETS SOLD FOR 96000

ABC Partnership
Statement of liquidation
November 1, 2019

Description Cash Other assets Liabilities

Balances before liquidation 24,000.00 84,000.00 12,000.00
Sale of assets 96,000.00 - 84,000.00
Balances 120,000.00 - 12,000.00
Payment of liquidation exp. - 1,000.00
Balances 119,000.00 - 12,000.00
Payment of liabiities - 12,000.00 - 12,000.00
Balances 107,000.00 - -
Payment to partners - 107,000.00
Balance

CASE 2: ASSETS SOLD FOR 36,000

ABC Partnership

November 1, 2019

Description Cash Other assets Liabilities

Balances before liquidation 24,000.00 84,000.00 12,000.00
Sale of assets 36,000.00 - 84,000.00
Balances 60,000.00 - 12,000.00
Payment of liquidation exp. - 1,000.00
Balances 59,000.00 - 12,000.00
Payment of liabiities - 12,000.00 - 12,000.00
Balances 47,000.00 - -
Off set loan
Balances 47,000.00 - -
Invest cash 2,700.00
Balances 49,700.00 - -
Payment to partners - 49,700.00
Balance

PROBLEM NO. 2

BB, C CAPITAL 130,000.00

EB, C CAPITAL - 8,000.00
DECREASE IN CAPITAL - 138,000.00

LIQUIDATION EXP. (12,000*50%) - 6,000.00

SHARE LOSS ON REALIZATION - 132,000.00

SHARE ON LOSS - 132,000.00

DIVIDE 50%
TOTAL LOSS - 264,000.00
BV OF NON-CASH ASSET 434,000.00
PROCEEDS 170,000.00
 30% 50% 20%
A, Loan A, Capital B, Capital C, Capital
2,400.00 9,600.00 48,000.00 36,000.00 BV OF ASSET 84,000.00
3,600.00 6,000.00 2,400.00 PROCEEDS 96,000.00
2,400.00 13,200.00 54,000.00 38,400.00 GAIN 12,000.00
- 300.00 - 500.00 - 200.00
2,400.00 12,900.00 53,500.00 38,200.00

2,400.00 12,900.00 53,500.00 38,200.00

- 2,400.00 - 12,900.00 - 53,500.00 - 38,200.00

A B C
BB 9,600.00 48,000.00 36,000.00
LOAN 2,400.00
INTEREST 12,000.00 48,000.00 36,000.00
GAIN 3,600.00 6,000.00 2,400.00
liquidation - 300.00 - 500.00 - 200.00
EB 15,300.00 53,500.00 38,200.00

30% 50% 20%

A, Loan A, Capital B, Capital C, Capital
2,400.00 9,600.00 48,000.00 36,000.00 BV OF ASSET 84,000.00
- 14,400.00 - 24,000.00 - 9,600.00 PROCEEDS 36,000.00
2,400.00 - 4,800.00 24,000.00 26,400.00 LOSS ON SALE - 48,000.00
- 300.00 - 500.00 - 200.00
2,400.00 - 5,100.00 23,500.00 26,200.00

2,400.00 - 5,100.00 23,500.00 26,200.00

- 2,400.00 2,400.00
- - 2,700.00 23,500.00 26,200.00
2,700.00
- - 23,500.00 26,200.00
- 23,500.00 - 26,200.00
PROBLEM NO. 3

ABC Partnership
Statement of liquidation
January 1, 2019

Description Cash Other assets Liabilities

Balances before liquidation - 181,800.00 84,000.00
Jan. sale of assets and dist. of gain/loss 72,000.00 - 90,000.00
Balances 72,000.00 91,800.00 84,000.00
Payment of liquidation expenses - 1,200.00
Balances 70,800.00 91,800.00 84,000.00
Payment of liabilities - 66,000.00 - 66,000.00
Balances after January 4,800.00 91,800.00 18,000.00
Feb. sale of assets and distribution of gain/loss 21,600.00 - 30,000.00
Balances 26,400.00 61,800.00 18,000.00
Payment of liquidation expenses - 1,320.00
Balances 25,080.00 61,800.00 18,000.00
Payment of liabilities - 18,000.00 - 18,000.00
Balances before payment to partners 7,080.00 61,800.00 -
Payment to partners (Schedule 1) - 5,280.00
Balances after February 1,800.00 61,800.00 -
March sale of assets and distribution 19,200.00 - 24,000.00
Balances 21,000.00 37,800.00 -
Payment of liquidation expenses - 1,440.00
Balances before payment to partners 19,560.00 37,800.00 -
Payment to partners (Schedule 2) - 18,360.00
Balances after March 1,200.00 37,800.00 -
April sale of assets and distribution 6,000.00 - 19,800.00
Balances 7,200.00 18,000.00 -
Payment of liquidation expenses - 4,800.00
Balances before payment to partners 2,400.00 18,000.00 -
Payment to partners (Schedule 3) - 1,800.00
Balances after April 600.00 18,000.00 -
May sale of assets and distribution 2,400.00 - 18,000.00
Balances 3,000.00 - -
Payment of liquidation expenses - 960.00
Balances before payment to partners 2,040.00 - -
Off set loan
Balances 2,040.00 - -
Payment to partners (Schedule 4) - 2,040.00

CASH AVAILABLE:
PROCEEDS 72,000.00
21,600.00 BB
19,200.00 LOAN
6,000.00 TOTAL INTEREST
2,400.00 LOSS/LIQUI.
LIQUIDATION - 1,200.00 EB
- 1,320.00
- 1,440.00
- 4,800.00
- 960.00
LIABILITIES - 84,000.00
CASH AVAILABLE / ENDING CAPITAL & LOAN 27,480.00
BEGINNING CAPITAL $ LOAN 97,800.00
DECREASE IN CAPITAL - 70,320.00

ABC Partnership
Schedule/safe payment
February

SCHEDULE 1 40% 20%

A B
Capital balances before cash distribution 14,832.00 20,016.00
Add: loans 6,000.00
Total partner's interest 20,832.00 20,016.00
Restricted interest for possible losses:
Unrealized non-cash assets - 61,800.00 - 24,720.00 - 12,360.00
Cash withheld - 1,800.00 - 720.00 - 360.00
Balances - 4,608.00 7,296.00
Restricted for possible loss of A 4,608.00 - 1,536.00
Payment to partners - 5,760.00
Restricted for possible loss of D - 420.00
Balances - 5,340.00
Restricted for possible loss of C - 60.00
Balances - 5,280.00

Applied to:
Loan
Capital
Total cash distributions

SCHEDULE 2 40% 20%

A B
Capital balances before cash distribution 12,336.00 13,488.00
Add: loans 6,000.00
Total partner's interest 18,336.00 13,488.00
Restricted interest for possible losses:
Unrealized non-cash assets - 37,800.00 - 15,120.00 - 7,560.00
Cash withheld - 1,200.00 - 480.00 - 240.00
Balances 2,736.00 5,688.00

Applied to:
Loan 2,736.00
Capital - 5,688.00
Total cash distributions 2,736.00 5,688.00

ABC Partnership
Cash priority program
January 1, 2019

Interest
40% 20%
A B
Capital balances before liquidation 26,400.00 25,800.00
Add: Loans 6,000.00
Total interest 32,400.00 25,800.00
Divide by P/L ratio 40% 20%
Loss absorption capacity 81,000.00 129,000.00
Priority 1 27,000.00
Balances 81,000.00 102,000.00
Priority 2 6,000.00
Balances 81,000.00 96,000.00
Priority 3 15,000.00
Balances 81,000.00 81,000.00

Installment distribution
Schedule 1

40% 20%
Amount A B
Cash available 5,280.00
Priority 1 - 5,280.00 5,280.00
Total - 5,280.00

Installment distribution
Schedule 2

40% 20%
 Amount A B
Cash available 18,360.00
Allocation 1 balance 120.00 120.00
Balances 18,240.00
Priority 2 2,400.00 1,200.00
Balances 15,840.00
Priority 3 9,000.00 3,000.00
Balances 6,840.00
Allocation 4 (Based on P/L ratio) 6,840.00 2,736.00 1,368.00
Balances - 2,736.00 5,688.00
 Capital ratio 40% 20% 20% 20%
capital 10,080.00 5,040.00 5,040.00 5,040.00 25,200.00

P/L 40% 20% 20% 20%

A, Loan D, Loan A, Capital B, Capital C, Capital D, Capital BV
6,000.00 3,000.00 26,400.00 25,800.00 20,400.00 16,200.00 Proceeds
- 7,200.00 - 3,600.00 - 3,600.00 - 3,600.00 Loss
6,000.00 3,000.00 19,200.00 22,200.00 16,800.00 12,600.00
- 480.00 - 240.00 - 240.00 - 240.00
6,000.00 3,000.00 18,720.00 21,960.00 16,560.00 12,360.00
BV
6,000.00 3,000.00 18,720.00 21,960.00 16,560.00 12,360.00 Proceeds
- 3,360.00 - 1,680.00 - 1,680.00 - 1,680.00 Loss
6,000.00 3,000.00 15,360.00 20,280.00 14,880.00 10,680.00
- 528.00 - 264.00 - 264.00 - 264.00
6,000.00 3,000.00 14,832.00 20,016.00 14,616.00 10,416.00

6,000.00 3,000.00 14,832.00 20,016.00 14,616.00 10,416.00

- 5,280.00
6,000.00 3,000.00 14,832.00 14,736.00 14,616.00 10,416.00 BV
- 1,920.00 - 960.00 - 960.00 - 960.00 Proceeds
6,000.00 3,000.00 12,912.00 13,776.00 13,656.00 9,456.00 loss
- 576.00 - 288.00 - 288.00 - 288.00
6,000.00 3,000.00 12,336.00 13,488.00 13,368.00 9,168.00
- 2,736.00 - 3,000.00 - 5,688.00 - 5,568.00 - 1,368.00
3,264.00 - 12,336.00 7,800.00 7,800.00 7,800.00 BV
- 5,520.00 - 2,760.00 - 2,760.00 - 2,760.00 Proceeds
3,264.00 - 6,816.00 5,040.00 5,040.00 5,040.00 loss
- 1,920.00 - 960.00 - 960.00 - 960.00
3,264.00 - 4,896.00 4,080.00 4,080.00 4,080.00
- 720.00 - 360.00 - 360.00 - 360.00
2,544.00 - 4,896.00 3,720.00 3,720.00 3,720.00 BV
- 6,240.00 - 3,120.00 - 3,120.00 - 3,120.00 Proceeds
2,544.00 - - 1,344.00 600.00 600.00 600.00 Loss
- 384.00 - 192.00 - 192.00 - 192.00
2,544.00 - - 1,728.00 408.00 408.00 408.00
- 1,728.00 1,728.00
816.00 - - 408.00 408.00 408.00
- 816.00 - 408.00 - 408.00 - 408.00

40% 20% 20% 20%

 A B C D
26,400.00 25,800.00 20,400.00 16,200.00
6,000.00 3,000.00
AL INTEREST 32,400.00 25,800.00 20,400.00 19,200.00
- 28,128.00 - 14,064.00 - 14,064.00 - 14,064.00
4,272.00 11,736.00 6,336.00 5,136.00

20% 20%
C D
14,616.00 10,416.00
3,000.00
14,616.00 13,416.00

- 12,360.00 - 12,360.00
- 360.00 - 360.00
1,896.00 696.00
- 1,536.00 - 1,536.00
360.00 - 840.00
- 420.00 840.00
- 60.00 -
60.00
- -

20% 20%
C D
 13,368.00 9,168.00
3,000.00
13,368.00 12,168.00

- 7,560.00 - 7,560.00
- 240.00 - 240.00
5,568.00 4,368.00

3,000.00
5,568.00 1,368.00
5,568.00 4,368.00

Interest Payments
20% 20%
C D A B C D
20,400.00 16,200.00
3,000.00
20,400.00 19,200.00
20% 20%
102,000.00 96,000.00
5,400.00
102,000.00 96,000.00
6,000.00 1,200.00 1,200.00
96,000.00 96,000.00
15,000.00 15,000.00 3,000.00 3,000.00 3,000.00
81,000.00 81,000.00

20% 20%
C D

- -

20% 20%
C D

1,200.00

3,000.00 3,000.00

1,368.00 1,368.00
5,568.00 4,368.00
 90,000.00
72,000.00
- 18,000.00

30,000.00
21,600.00
- 8,400.00

24,000.00
19,200.00
- 4,800.00

19,800.00
6,000.00
- 13,800.00

18,000.00
2,400.00
- 15,600.00