Student Name: Maverick C.

Roque
Yr. Section: BSA III - Honesty

AB, CD & EF Partnership

Statement of Partnership Realization and Liquidatio
ASSETS
PARTICULAR
Balances before liquidation

CASH
18,000

AB LOAN
30,000

OTHER
ASSETS
307,000

January transactions:
1. Collection of AR

51,000

(66,000)

2. Sale of Inventory

38,000

(52,000)

3. Liquidation exp. paid

(2,000)

4. Share in Credit Memo

5. Payment of Liabilities

(50,000)

Bal. before cash distribution

55,000

Payment of Partners (Sched 1)

(45,000)

Ending balances-January

30,000

189,000

30,000

189,000

6,000

30,000

189,000

6,000

30,000

189,000

10,000

February transactions:
6. Liquidation exp. paid
Bal. before cash distribution

(4,000)

Payment of Partners (Sched 2)

Ending balances-February
8. Sale of machinery & equipment
9. Liquidation exp. paid
Bal. before final distribution

146,000
(5,000)
147,000

10. Offset AB's loan receivable

Balances after liquidation

147,000
(147,000)

Schedule 1: January payment

AB
50%

CD
30%

EF
20%

(30,000)

Loan to Partnership
Capital

30,000
(30,000)

Payment to partners

Loan from Partnership

(189,000)

20,000
104,000

81,600

68,400

74,000

101,600

68,400

Total Potential loss

(99,500)

(59,700)

(39,800)

Balances

(25,500)

41,900

28,600

25,500

(15,300)

(10,200)

Total Interest

Absorption of AB's piotential loss

Safe Cash Payment to Partners

Application
Loan
Capital
Schedule 2: February payment
Loan from Partnership
Loan to Partnership
Capital
Total Interest
Total Potential loss
Balances
Absorption of AB's piotential loss
Safe Cash Payment to Partners
Application
Loan
Capital

AB
50%
(30,000)
102,000
72,000
97,500
(25,500)
25,500
-

26,600

18,400

20,000
6,600

18,400

CD
30%

73,800
73,800
58,500
15,300
(15,300)
-

EF
20%

49,200
49,200
39,000
10,200
(10,200)
-

EF Partnership
p Realization and Liquidation
LIABILITIES
LIABILITY
53,000

CD LOAN
20,000

(3,000)

AB
50%

CAPITAL
CD
30%

EF
20%

118,000

90,000

74,000

(7,500)

(4,500)

(3,000)

(7,000)

(4,200)

(2,800)

(1,000)

(600)

(400)

1,500

900

600

104,000

81,600

68,400

(6,600)

(18,400)

104,000

75,000

50,000

(2,000)

(1,200)

(800)

102,000

73,800

49,200

102,000

73,800

49,200

(21,500)

(12,900)

(8,600)

(2,500)

(1,500)

(1,000)

78,000

59,400

39,600

48,000

59,400

39,600

(48,000)

(59,400)

(39,600)

(50,000)
-

20,000
(20,000)
-

(30,000)

Student Name: Maverick C. Roque

Yr. Section: BSA III - Honesty
M, N, O & P PARTNERSHIP
Cash Priority Program
January 1, 2016

PARTICULAR

BALANCES
N
O
3/8
1/8

M
3/8

P
1/8

Loan balances

20,000

5,000

25,000

15,000

Capital balances

70,000

70,000

30,000

20,000

Total Interest

90,000

75,000

55,000

35,000

3/8

3/8

1/8

1/8

240,000

200,000

440,000

280,000

Divided by P&L
Loss Aborp. Power
Priority I
Balances

(160,000)
240,000

200,000

Priority II
Balances

240,000

Priority III

(40,000)

Balances

200,000

200,000

200,000

280,000

280,000

(40,000)

(40,000)

240,000

240,000

(40,000)

(40,000)

200,000

200,000

Schedule 1
Available for distribution
Priority I
Priority II
Payment to partners
Application
Loan Balances
Capital Balances

Cash
25,000

Schedule 1
Available for distribution
Priority II
Priority III
Excess
Payment to partners
Application
Loan Balances
Capital Balances

Cash
40,000

P PARTNERSHIP
riority Program
uary 1, 2016
M
3/8

CASH PAYMENTS
N
O
3/8
1/8

P
1/8

20,000

TOTAL

20,000

5,000

5,000

10,000

15,000

5,000

5,000

25,000

15,000

30,000

10,000

55,000

CASH PAYMENTS
N
O

3,750
3,750

18,750

3,750

TOTAL

20,000
2,500
22,500

2,500
2,500

22,500

2,500

CASH PAYMENTS
N
O

15,000
3,750
18,750

20,000
5,000
25,000

TOTAL

2,500
5,000
1,250
8,750

2,500
5,000
1,250
8,750

2,500
6,250

8,750

5,000
25,000
10,000
40,000

Student Name: Maverick C. Roque

Yr. Section: BSA III - Honesty
Laguna Company
Statement of Affairs
October 31, 2015
Book Value

Assets
Assets pledged to Fully Secured Creditors:

107,000 Plant Assets

Less: Fully secured liabilities
Assets pledged to Partially Secured Creditors:
39,000 Inventories
Notes Payable
Free Assets
4,000 Cash
46,000 Accounts receivable
2,000 Supplies
Total Free Assets
Less: Unsecured Liabilities w/ Priority
Net Free Assets
Estimated deficiency to Unsecured Creditors
198,000 TOTAL

Book Value

Liabilities & Stockholers' Equity

Fully Secured Creditors:

50,400 Mortgage payable (including interest, P400)

Partially Secured Creditors:
21,000 Notes Payable
Less: Inventories
Unsecured Liabilities w/ Priority
5,800 Wages payable
1,200 Property taxes payable
Total
Unsecured Liabilities w/o Priority
60,000 Accounts payable

19,000 Notes payable

Stockholders' Equity
100,000 Common Stock, P5 par
(59,400) Deficit
198,000 TOTAL

Realizable
Value

Free Assets

Type of Creditors
Unsecured liabilities with priority

67,400
50,400

Fully secured creditors

17,000

Partially secured creditors

Unsecured creditors without priority

18,000
21,000

4,000
46,000
1,500

51,500
68,500
7,000
61,500
(20,500)
82,000

Creditors' Claim

Unsercured
Liabilities

50,400

21,000
18,000

3,000

5,800
1,200
7,000

60,000

19,000

82,000

Amount
of Claims

Amount to be
Paid

% Recovery

7,000

7,000

100%

50,400

50,400

100%

21,000

20,250

96%

79,000

59,250

75%

157,400

136,900