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    Solution DDL Partnership Practice Problem Cash Priority Program v2

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    Josephine Yen
    The document summarizes the liquidation of the DLL Partnership from January to March 2019. It shows the partnership's cash flows, asset realizations, and distributions to partners Dina, Lee, and Ly Go based on their capital balances and ownership percentages. At the end, it calculates each partner's loss absorption ability and distributes any excess cash according to priority.

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    Solution DDL Partnership Practice Problem Cash Priority Program v2

    Uploaded by

    Josephine Yen
    1K views1 page
    The document summarizes the liquidation of the DLL Partnership from January to March 2019. It shows the partnership's cash flows, asset realizations, and distributions to partners Dina, Lee, and Ly Go based on their capital balances and ownership percentages. At the end, it calculates each partner's loss absorption ability and distributes any excess cash according to priority.

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    Solution-DDL-Partnership-Practice-Problem-Cash-Priority-Program-v2

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    The document summarizes the liquidation of the DLL Partnership from January to March 2019. It shows the partnership's cash flows, asset realizations, and distributions to partners Dina, Lee, and Ly Go based on their capital balances and ownership percentages. At the end, it calculates each partner's loss absorption ability and distributes any excess cash according to priority.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1K views1 page

    Solution DDL Partnership Practice Problem Cash Priority Program v2

    Uploaded by

    Josephine Yen
    The document summarizes the liquidation of the DLL Partnership from January to March 2019. It shows the partnership's cash flows, asset realizations, and distributions to partners Dina, Lee, and Ly Go based on their capital balances and ownership percentages. At the end, it calculates each partner's loss absorption ability and distributes any excess cash according to priority.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    DLL Partnership

    Statement of Liquidation
    For the period January to March 2019
    Accounts Furnitures & Accounts Dina, Capital Lee, Capital Ly Go, Capital
    Cash Inventories Loan - Dina Loan - Ly Go
    Receivable Fixtures, net Payable (35%) (35%) (30%)
    Balances before liquidation 10,000 100,000 80,000 200,000 15,000 5,000 2,000 120,000 90,000 158,000
    Realization of Accounts Receivable in January 25,000 (50,000) (8,750) (8,750) (7,500)
    Payment of Accounts Payable (15,000) (15,000)
    Balances before cash distribution 20,000 50,000 80,000 200,000 - 5,000 2,000 111,250 81,250 150,500
    Partial Cash Distribution in January (15,000) (2,000) (13,000)
    Balances 5,000 50,000 80,000 200,000 - 5,000 - 111,250 81,250 137,500
    Realization of Accounts Receivable in February 30,000 (50,000) (7,000) (7,000) (6,000)
    Realization of Inventories in February 10,000 (40,000) (10,500) (10,500) (9,000)
    Balances before cash distribution 45,000 - 40,000 200,000 - 5,000 - 93,750 63,750 122,500
    Partial Cash Distribution in February (40,000) (1,154) (38,846)
    Balances 5,000 - 40,000 200,000 - 3,846 - 93,750 63,750 83,654
    Realization of Inventories in March 10,000 (40,000) (10,500) (10,500) (9,000)
    Realization of Furnitures & Fixtures in February 100,000 (200,000) (35,000) (35,000) (30,000)
    Balances before cash distribution 115,000 - - - - 3,846 - 48,250 18,250 44,654
    Final Cash Distribution (115,000) - - - - (3,846) - (48,250) (18,250) (44,654)
    Balances - - - - - - - - - -

    DLL Partnership
    Cash Priority Program
    Cash Payment
    Dina Lee Ly Go Dina (35%) Lee (35%) Ly Go (30%)
    Capital Balances 120,000 90,000 158,000
    Loan Balances 5,000 - 2,000
    Total Interest 125,000 90,000 160,000
    P/L Ratio 35% 35% 30%
    Loss Absorption Ability 357,143 257,143 533,333
    Excess of Loss Absorption Ability over other partners (176,190) Priority 1 52,857
    Balance 357,143 257,143 357,143
    Excess of Loss Absorption Ability over other partners (100,000) (100,000) Priority 2 35,000 30,000
    Balance 257,143 257,143 257,143 Total 35,000 - 82,857

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