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    Partnership Liquidation - Grp1

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    Andrea Breis
    This document contains information about the liquidation of a partnership between three partners named Ellaine, Flor, and Gina. It shows the capital balances of each partner before and after the sale of a non-cash asset and the allocation of the loss on its sale. It also provides instructions on how to distribute a payment of $14,000 to the partners based on their capital ratios.

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    Partnership Liquidation - Grp1

    Uploaded by

    Andrea Breis
    16 views2 pages
    This document contains information about the liquidation of a partnership between three partners named Ellaine, Flor, and Gina. It shows the capital balances of each partner before and after the sale of a non-cash asset and the allocation of the loss on its sale. It also provides instructions on how to distribute a payment of $14,000 to the partners based on their capital ratios.

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    Partnership Liquidation_Grp1

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    This document contains information about the liquidation of a partnership between three partners named Ellaine, Flor, and Gina. It shows the capital balances of each partner before and after the sale of a non-cash asset and the allocation of the loss on its sale. It also provides instructions on how to distribute a payment of $14,000 to the partners based on their capital ratios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views2 pages

    Partnership Liquidation - Grp1

    Uploaded by

    Andrea Breis
    This document contains information about the liquidation of a partnership between three partners named Ellaine, Flor, and Gina. It shows the capital balances of each partner before and after the sale of a non-cash asset and the allocation of the loss on its sale. It also provides instructions on how to distribute a payment of $14,000 to the partners based on their capital ratios.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    MC 7 - 1

    40% 40% 20%


    Cash OA A/P Ellaine, Capital Flor, Capital Gina, Capital
    Balance before liquidation 25,000.00 180,000.00 52,000.00 40,000.00 65,000.00 48,000.00 First sales of non-cash asset 90,000.00
    Less on Realization -16,000.00 -16,000.00 -8,000.00 Realizes 50,000.00
    Balances 24,000.00 49,000.00 40,000.00 40,000.00
    Allocate the Non-cash asset book value 90,000 -36,000.00 -36,000.00 -18,000.00 -90,000.00
    Balances -12,000.00 13,000.00 22,000.00
    Possible Deficient (Ellaine) 12,000.00 -8,000.00 -4,000.00
    Payment to Partners - 5,000.00 18,000.00

    LETTER A

    MC 7 - 2

    40% 40% 20%


    Ellaine, Capital Flor, Capital Gina, Capital
    Balances after loss on realization 24,000.00 49,000.00 40,000.00 Non-cash asset book value 90,000
    Allocate the 93,000 -37,200.00 -37,200.00 -18,600.00 -93,000 Cash withheld 3,000
    Balances -13,200.00 11,800.00 21,400.00 93,000
    Possible Deficient (Ellaine) 13,200.00 -8,800.00 -4,400.00
    Payment to Gina 0.00 - 17,000.00

    LETTER B

    MC 7 - 3
    How should P14,000 be distibuted to Ellaine, Flor, Gina?
    40% 40% 20%
    Ellaine, Capital Flor, Capital Gina, Capital
    14,000.00 5,600.00 5,600.00 2,800.00

    LETTER D

    MC 7 - 4

    125,000.00
    -20,000.00 Net loss
    105,000.00
    5,000.00 Unpaid Liab
    110,000.00
    -700.00 Cash
    other assets 109,300.00
    LETTER C

    MC 7 - 5

    Net Loss 20,000.00


    Capital P/L Ratio 60%
    Bal. 12,000.00
    Capital of Aguas 25,000.00
    Final Cap. of Aguas 13,000.00

    Capital of Aguas 13,000.00


    Amount Received in Final Settle. 19,000.00
    Share on gain on Realization 6,000.00
    P/L Ratio of Aguas 60%
    Total gain on Realization 10,000.00
    Other Assets 109,300.00
    Cash on other assets 119,300.00

    LETTER D

    MC 7 - 6
    60% 25% 15% Payment
    Aguas Bernal Coral Aguas Bernal Coral
    Capital Balances 13,000.00 45,000.00 47,000.00
    Loss absorbtion balances 21,666.67 180,000.00 313,333.33
    Allocation 1 -133,333.33 20,000.00
    Balances 21,666.67 180,000.00 180,000.00
    Allocation 2 -158,333.33 -158,333.33 - 39,583 23,750
    Balances 21,666.67 21,666.67 21,666.67

    Cash Received (Coral) 33,000.00


    Allocation 1 20,000.00
    Cash Received From Allocation 2 13,000.00

    Total Cash Avail. for allocation 2 34,666.67


    Share of Bernal 21,666.67

    LETTER D

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