Rockstar Partnership

Statement of Liquidation
January 1, 20x4 to May 31, 20x4
Cash
Balances before
Liquidation
January
- Realization
- Payment
of
expenses
- Payment
of
liabilities
Balances after
Jan
February
- Realization
- Payment
of
expenses
- Payment
of
liabilities
Balances before
payment to
partners
Payment to
Partners (Sch.
1)
Balances after
February
March
- Realization
- Payment
of
expenses
Balances before
payment to
partners
Payment to
Partners (Sch.
2)
Balances after
March

NonCash
Assets
181,800

Liabilitie
s

K, loan

84,000

6,000

72,000

F,
capital
(20%)

J,
capital
(20%)

3,000

26,400

25,800

20,400

16,200

(3,600
)

(3,600
)

( 240
)

( 240
)

_____
_
16,560

_____
_
12,360

(1,680
)

(1,680
)
( 264
)
_____
_

(90,000
)

(1,200)

( 480
)

(66,000
)

______

(66,000)

_____

_____

_____
_

(3,600)

______

4,800

91,800

18,000

6,000

3,000

18,720

21,960

21,600

(30,000
)

( 240)

(3,360
)
(1,680)

(1,320)

( 528
)

( 264)

_____
_

_____
_

_____
_

______
_

( 264
)
_____
_

61,800

6,000

3,000

14,832

20,016

14,616

10,416

______

_____
_

_____

_____
_

(5,280)

_____
_

_____

( 5,280)
1,800

61,800

6,000

3,000

14,832

14,736

14,616

10,416

( 960)

( 960)

19,200

(24,000
)

( 288
)

( 288
)

(18,000
)

______
_

7,080

(18,000
)

(1,920
)
( 960)

( 1,440)

______

_____
_

19,560

31,500

6,000

3,000

(18,360
)

______

(2,736
)

(3,000
)

1,200

37,800

3,264

6,000

(19,800
)

(4,800)

______

2,000

15,000

_____

( 576
)

( 288)

12,336

13,488

13,368

9,168

(5,688)

(5,568
)

(1,368
)

7,800

7,800

7,800

(2,760
)

(2,760
)

( 960)

( 960)

4,080

4,080

12,336
(5,520
)

(2, 760)

of
expenses
Balances before
payment to
partners

C,
capital
(20%)

(7,200
)

April
- Realization
- Payment

J, loan

K,
capital
(40%)

3,264

(1,920
)

( 960)

4,896

4,080

Payment to
Partners (Note
1)
Balances after
April

(1,500)

______

( 720)

500

18,000

2,554

2,400

(18,000
)

May
- Realization
- Payment of
expenses
Balances before
Offsetting
Offset deficit vs.
Loan
Balances before
payment
Payment to
Partners (Note
2)

( 360)

( 360)

3,720

3,720

(3,120
)

(3,120
)

( 192)

( 192
)

( 192
)

408

408

408

_____
_

_____

_____

408

408

(408)

(408)

( 360)
4,896

3,720

(6,240
)
(3,120)

( 960)

_____

1,440

2,554

( 384
)
( 1,728
)

______

(1,728
)

1,728

2,040

816

408

(2,040)

(816)

(408)

2.

Rockstar Partnership
Schedule of Safe Payments
Schedule 1 February 28, 20x4
Computation of Distribution of Cash on February 28, 20x4

Balances before payment to partners:

Loans
Capital
Total Interest
Restricted interest for possible losses:
Unrealized non-cash assets
P 61,800
Cash withheld
1,800
P 63,600

Restricted for possible insolvency of K (2:2:2)

Restricted for possible insolvency of J (2:2)

Restricted for possible insolvency of F
Payment to partner (s)
Applied to:
Loans
Capital
Schedule 2 March 31, 20x4

K,
capital
(40%)

C,
capital
(20%)

F,
capital
(20%)

J,
capital
(20%)

6,000
14,832
20,832

20,016
20,016

14,616
14,616

3,000
10,416
13,416

(12,72
0)

(12,72
0)
1,896

(12,72
0)
696

(1,536
)
360

(1,536
)
( 840
)
840

(25,44
0)
( 4,60
8)
4,608

7,296
(1,536
)
5,760
( 420
)
(

5,340
60)
5,280

-05,280
5,280

( 420
)
(
60
)
60

Computation of Distribution of Cash on March 31, 20x4

Balances before payment to partners:

Loans
Capital
Total Interest
Restricted interest for possible losses:
Unrealized non-cash assets
37,800
Cash withheld

K,
capital
(40%)

C,
capital
(20%)

F,
capital
(20%)

J,
capital
(20%)

6,000
12,336
18,336

13,488
13,488

13,488
13,488

3,000
9,168
12,168

(15,600)
2,736

( 7,800)
5,688

( 7,800)
5,568

( 7,800)
4,368

2,736
___-02,736

-05,688
5,688

-05,568
5,568

3,000
1,368
4,368

P
1,200
P 39,000

Applied to:
Loans
Capital
3.
Rockstar Partnership
Cash Payment Priority Program
January 31, 20x4
Interests

K,
capita
l
(40%)
Balances
before
liquidation:
Loans
Capital
Total Interests
Divided by: P &
L%
Loss Absorption
Abilities
Priority I

Priority II

Priority III

6,000
26,40
0
32,40
0
__40%
81,00
0
______
81,00
0
______
81,00
0
______
81,00
0

C,
capital
(20%)

F,
capital
(20%)

J,
capital
(20%)

K,
capital
(40%)

Payments

C,
capita
l
(20%)

F,
capita
l
(20%)

J,
capita
l
(20%)

Total

3,000
25,800

20,400

16,200

25,800

20,400

19,200

___20%
129,00
0
(27,00
0)
102,00
0
( 6,000
)

__20%
102,00
0

__20%

_______
102,00
0
( 6,000
)

_______

96,000
(15,00
0)
81,000

96,000
(15,00
0)
81,000

96,000
(15,00
0)
81,000

96,000
5,400
5,400

96,000
2,400
_______

1,200

1,200

______
_

3,000

3,000

____-0-

9,600

4,200

3,000

9,000

3,000

16,80
0

.
4.

Total Interests
Divided by: P & L %
Loss Absorption
Abilities
Order of Cash Distribution

K, capital
(40%)
P 32,400
____40%

C, capital
(20%)
P 25,800
____20%

F, capital
(20%)
P 20,400
____20%

J, capital
(20%)
P 19,200
____20%

P 81,000
(4)

P129,000
(1)

P 102,000
(2)

P 96,000
(3)

Vulnerability Rankings (1
Is most vulnerable)

(1)

(4)

(3)

(2)

The vulnerability ranks indicate that partner K is most vulnerable to losses because his equity were reduced to zero
with a partnership liquidation loss of P81,000. Partner C is least vulnerable because his equity is sufficient to absorb
his share of liquidation losses up to P129,000.

Order of Cash
Distribution
1. First P70,000
2. Next P 4,500
3. Next P2,000
4. Next P7,500
5. Remainder

Creditor
s
100%

40%

100%
50%
33 1/3%
20%

F
50%
33 1/3%
20%

33 1/3%
20%