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Installment Liquidation

The document summarizes the cash flows and asset liquidation of the AA BB CC Partnership from January to March 20x14. In January, the partnership collected accounts receivable and sold assets, paid down liabilities, and distributed $45,000 to partners with $10,000 remaining. In February, additional liquidation expenses were paid, leaving $6,000. In March, the final non-cash assets were sold for $146,000, expenses were paid, and the remaining $147,000 was distributed to partners, fully liquidating the partnership.
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0% found this document useful (0 votes)
68 views4 pages

Installment Liquidation

The document summarizes the cash flows and asset liquidation of the AA BB CC Partnership from January to March 20x14. In January, the partnership collected accounts receivable and sold assets, paid down liabilities, and distributed $45,000 to partners with $10,000 remaining. In February, additional liquidation expenses were paid, leaving $6,000. In March, the final non-cash assets were sold for $146,000, expenses were paid, and the remaining $147,000 was distributed to partners, fully liquidating the partnership.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as XLSX, PDF, TXT or read online on Scribd
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AA BB CC Partnership

Statement of Partnership Realization and Liquidation


January 1 to March 31, 20x14

Cash Noncash Assets


January
Beginning Balance 18,000 307,000
Collection of accounts receivable 51,000 (66,000)
Sale of Asset 38,000 (52,000)
Liquidation Expense (2,000) -
Payment of liabilities (50,000) -
Credit memorandum - -
Balance 55,000 189,000
Payment to partners (45,000) -
Balance 10,000 189,000
February
Liquidation Expense (4,000) -
Balance 6,000 189,000
March
Sale of Noncash asset 146,000 (189,000)
Liquidation Expense (5,000) -
Balance 147,000 -
Payment to partners (147,000) -

Schedule of Safe Payment


January AA BB
Capital balance 74,000.00 101,600.00
Add (deduct) - -
Total interest 74,000.00 101,600.00
Possible Loss (99,500.00) (59,700.00)
Balance (25,500.00) 41,900.00
Additional Loss 25,500.00 (15,300.00)
Balance - 26,600.00

February
Capital balance 72,000.00 73,800.00
Add (deduct) - -
Total interest 72,000.00 73,800.00
Possible Loss (97,500.00) (58,500.00)
Balance (25,500.00) 15,300.00
Additional Loss 25,500.00 (15,300.00)
Balance - -

March
Capital balance 48,000.00 59,400.00
Add (deduct) - -
Total interest 48,000.00 59,400.00

Cash Priority Program


AA BB
Capital 88,000 110,000
P&L Ratio 50% 30%
Loss absorption balance 176,000 366,667
Priority 1 - -
Balance 176,000 366,667
Priority 2 - 190,667
Balance 176,000 176,000

Cash Available AA
January
to CC 18,400
to BB 26,600
February - -
March 51,000
Balance 96,000 48,000
Payment to partners 48,000
Total 48,000
CC Partnership
hip Realization and Liquidation
to March 31, 20x14
Capital Balances
50% 30% 20%
Liabilities AA BB CC

53,000 88,000 110,000 74,000


- (7,500) (4,500) (3,000)
- (7,000) (4,200) (2,800)
- (1,000) (600) (400)
(50,000) - - -
(3,000) 1,500 900 600
- 74,000 101,600 68,400
- - (26,600) (18,400)
- 74,000 75,000 50,000

- (2,000) (1,200) (800)


- 72,000 73,800 49,200

(21,500) (12,900) (8,600)


- (2,500) (1,500) (1,000)
- 48,000 59,400 39,600
- (48,000) (59,400) (39,600)

CC
68,400.00
-
68,400.00
(39,800.00)
28,600.00
(10,200.00)
18,400.00

49,200.00
-
49,200.00
(39,000.00)
10,200.00
(10,200.00)
-

39,600.00
-
39,600.00

Cash Priority Program


CC AA BB CC Total
74,000 666.67 667
20% -
370,000 - 57,200 38,133.33 95,333
3,333 - 57,200 38,800.00 96,000
366,667
190,667
176,000

BB CC

18,400
26,600
- -
30,600 20,400
28,800 19,200
59,400 39,600
86,000 58,000

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