Statement of Financial Position STATEMENT OF LIQUIDATION

Cash NCA A/P

Cash 30,000 Balance 30,000 850,000 150,000
Inventory 300,000 1st sale 200,000 (300,000)
Machinery 300,000 Balance 230,000 550,000 150,000
Equipment 250,000 Payment of Liability (150,000) (150,000)
Accounts Payable 150,000 Balance 80,000 550,000 -
Loan Payable to A 70,000 1st Distribution (80,000)
Loan Payable to B 50,000 Balance - 550,000 -
A, Capital (50%) 180,000 2nd sale 240,000 (300,000)
B, Capital (30%) 220,000 Balance 240,000 250,000 -
C, Capital (20%) 210,000 2nd Distribution (240,000)
Balance - 250,000 -
1st sale: Inventory was sold for 200,000 3rd sale 100,000 (250,000)
2nd sale: Machinery was sold for 240,000 Balance 100,000 - -
3rd sale: Equipment was sold for 100,000 3rd Distribution (100,000)
Total Proceeds 540,000 Balance - - -

Total Amount Received

A B C
1st Distribution - 30,000 50,000
2nd Distribution 45,000 117,000 78,000
3rd Distribution 50,000 30,000 20,000
Total 95,000 177,000 148,000
OF LIQUIDATION
50% 30% 20% CASH PRIORITY PROGRAM
A, Capital B, Capital C, Capital
250,000 270,000 210,000 A B C
(50,000) (30,000) (20,000) Net Capital 250,000 270,000 210,000
200,000 240,000 190,000 Divide by: P/L ratio 50% 30% 20%
LAC 500,000 900,000 1,050,000
200,000 240,000 190,000 Difference of 1st and 2nd (150,000)
(30,000) (50,000) Total 500,000 900,000 900,000
200,000 210,000 140,000 Difference of 1st,2nd and 3rd (400,000) (400,000)
(30,000) (18,000) (12,000) Equal LAC 500,000 500,000 500,000
170,000 192,000 128,000
(45,000) (117,000) (78,000)
125,000 75,000 50,000
(75,000) (45,000) (30,000)
50,000 30,000 20,000
(50,000) (30,000) (20,000)
- - -
CASH PRIORITY PROGRAM

A B C Total

1st Priority 30,000 30,000

2nd Priority 120,000 80,000 200,000

1st Distribution:
A B C Total
1st Priority - - 30,000 30,000
2nd Priority 30,000 20,000 50,000
Amount received - 30,000 50,000 80,000

2nd Distribution:
A B C Total
2nd Priority - 90,000 60,000 150,000
P/L ratio after all priorit 45,000 27,000 18,000 90,000
Amount received 45,000 117,000 78,000 240,000
Statement of Financial Position STATEMENT OF LIQUIDATION

Cash NCA A/P

Cash 30,000 Balance 30,000 850,000 150,000
Inventory 300,000 1st sale 200,000 (300,000)
Machinery 300,000 Balance 230,000 550,000 150,000
Equipment 250,000 Payment of Liability (150,000) (150,000)
Accounts Payable 150,000 Balance 80,000 550,000 -
Loan Payable to A 70,000 1st Distribution (80,000)
Loan Payable to B 50,000 Balance - 550,000 -
A, Capital (50%) 180,000 2nd sale 240,000 (300,000)
B, Capital (30%) 220,000 Balance 240,000 250,000 -
C, Capital (20%) 210,000 2nd Distribution (240,000)
Balance - 250,000 -
1st sale: Inventory was sold for 200,000 3rd sale 100,000 (250,000)
2nd sale: Machinery was sold for 240,000 Balance 100,000 - -
3rd sale: Equipment was sold for 100,000 3rd Distribution (100,000)
Total Proceeds 540,000 Balance - - -

Total Amount Received

A B C
1st Distribution - 30,000 50,000
2nd Distribution 45,000 117,000 78,000
3rd Distribution 50,000 30,000 20,000
Total 95,000 177,000 148,000
OF LIQUIDATION Schedule #1
50% 30% 20%
A, Capital B, Capital C, Capital Cash NCA A/P
250,000 270,000 210,000 Balance 30,000 850,000 150,000
(50,000) (30,000) (20,000) 1st sale 200,000 (850,000)
200,000 240,000 190,000 Balance 230,000 - 150,000
Payment of Liability (150,000) (150,000)
200,000 240,000 190,000 Balance 80,000 - -
- (30,000) (50,000) Absorbtion of Loss
200,000 210,000 140,000 Amount to be distributed 80,000 - -
(30,000) (18,000) (12,000)
170,000 192,000 128,000 Schedule #2
(45,000) (117,000) (78,000)
125,000 75,000 50,000 Cash NCA A/P
(75,000) (45,000) (30,000) Balance - 550,000 -
50,000 30,000 20,000 2nd sale 240,000 (550,000)
(50,000) (30,000) (20,000) Amount to be distributed 240,000 - -
- - -
 50% 30% 20%
A, Capital B, Capital C, Capital
250,000 270,000 210,000
(325,000) (195,000) (130,000)
(75,000) 75,000 80,000

(75,000) 75,000 80,000

75,000 (45,000) (30,000)
- 30,000 50,000

50% 30% 20%

A, Capital B, Capital C, Capital
200,000 210,000 140,000
(155,000) (93,000) (62,000)
45,000 117,000 78,000
Statement of Financial Position STATEMENT OF LIQUIDATION

Cash NCA A/P

Cash 30,000 Balance 30,000 850,000 150,000
Inventory 300,000 Sale of NCA 540,000 (850,000)
Machinery 300,000 Balance 570,000 - 150,000
Equipment 250,000 Payment of Liability (150,000) (150,000)
Accounts Payable 150,000 Balance 420,000 - -
Loan Payable to A 70,000 Distribution (420,000)
Loan Payable to B 50,000 Balance - - -
A, Capital (50%) 180,000
B, Capital (30%) 220,000
C, Capital (20%) 210,000

1st sale: Inventory was sold for 200,000

2nd sale: Machinery was sold for 240,000
3rd sale: Equipment was sold for 100,000
Total Proceeds 540,000
OF LIQUIDATION
50% 30% 20%
A, Capital B, Capital C, Capital
250,000 270,000 210,000
(155,000) (93,000) (62,000)
95,000 177,000 148,000

95,000 177,000 148,000

(95,000) (177,000) (148,000)
- - -
 Lump-sum
Sale of Inventory 200,000
Sale Machinery 240,000
Sale of Equipment 100,000
deducted if Actual liquidation expenses
there's any (to
be Estimated liquidation expenses
encountered
in AFAR) Cash withheld for future expenses
Net Proceeds 540,000
Add: Cash, beginning 30,000
Less: Payment of Accounts Payable (150,000)
Cash distributable to partners 420,000
1st Sale
Sale of Inventory 200,000
Actual liquidation expenses
Estimated liquidation expenses
Cash withheld for future expenses
Net Proceeds 200,000
Add: Cash, beginning 30,000
Less: Payment of Accounts Payable (150,000)
Cash distributable to partners 80,000 distribute using the CPP prepared
1st sale
Proceeds from Sale of Inventory 200,000
Less: Carrying Amount of ALL non-cash assets (850,000)
Total Loss (650,000)

2nd sale
Proceeds from Sale of Machinery 240,000
Less: Carrying Amount of remaining non-cash assets (550,000)
Total Loss (310,000)
Schedule #1
50% 30% 20%
A B C
Total Capital 250,000 270,000 210,000
Share in Total Loss (325,000) (195,000) (130,000)
Total (75,000) 75,000 80,000
Absorb 75,000 (45,000) (30,000)
Amount distributed to partners - 30,000 50,000

Schedule #2
50% 30% 20%
A B C
Total Capital 200,000 210,000 140,000
Share in Total Loss (155,000) (93,000) (62,000)
Amount distributed to partners 45,000 117,000 78,000