Question:
After the conference and tackled about Partnership Liquidation, what are the things or
knowledge that you've learned that you won't forget after the course?
Answer:
I learned the about the steps or process of partnership liquidation:
1. Realization or convert all noncash assets to cash (gain or loss will be
distributed to partners). If the book value is less than the selling price, then
there is a gain. If the book value is more than the selling price, then there is a
loss.
2. Pay partnership liabilities and liquidation expense according to priority. These
priorities are arranged as; liquidation expense, government, employees,
outside creditors (accounts payable or loans payable), loan to partners, and
partners’ capital.
3. Distribute the remaining assets to partners and the ending balance must
always equal to zero.
After the conference and tackled about Partnership Liquidation, what are the things or
knowledge that you've learned that you won't forget after the course?
Answer:
I learned the about the steps or process of partnership liquidation:
1. Realization or convert all noncash assets to cash (gain or loss will be
distributed to partners). If the book value is less than the selling price, then
there is a gain. If the book value is more than the selling price, then there is a
loss.
2. Pay partnership liabilities and liquidation expense according to priority. These
priorities are arranged as; liquidation expense, government, employees,
outside creditors (accounts payable or loans payable), loan to partners, and
partners’ capital.
3. Distribute the remaining assets to partners and the ending balance must
always equal to zero.
