Question:
On December 31, 2016, the balance sheet of CDO Partnership is as follows:
Cash 15,360
Noncash Assets 271,360
Accounts Payable 51,200
Loan Payable to Dorie 20,480
Cherry, Capital 49,152
Dorie, Capital 73,728
Oscar, Capital 92,160
Profit and losses were shared as follows; Cherry, 30%; Dorie, P30% and Oscar, 40%. It was decided to liquidate the business. The following
is a summary of the realization and liquidation Expense activities.
Reserve for future
Liquidation Liabilities
Period BV of assets Cash Proceeds liquidation
Expense Paid Paid
expense
1st 133,120 81,920 4,100 40,000 1,000
2nd 76,800 51,200 4,800 11,200 2,000
3rd 61,440 35,840 3,600 -
Total 271,360 168,960 12,500 51,200
Required: Prepare Statement of Liquidation using:
a. Lumpsum Liquidation
b. Installment Liquidation (Prepare Schedule of Safe Payments if needed)
On December 31, 2016, the balance sheet of CDO Partnership is as follows:
Cash 15,360
Noncash Assets 271,360
Accounts Payable 51,200
Loan Payable to Dorie 20,480
Cherry, Capital 49,152
Dorie, Capital 73,728
Oscar, Capital 92,160
Profit and losses were shared as follows; Cherry, 30%; Dorie, P30% and Oscar, 40%. It was decided to liquidate the business. The following
is a summary of the realization and liquidation Expense activities.
Reserve for future
Liquidation Liabilities
Period BV of assets Cash Proceeds liquidation
Expense Paid Paid
expense
1st 133,120 81,920 4,100 40,000 1,000
2nd 76,800 51,200 4,800 11,200 2,000
3rd 61,440 35,840 3,600 -
Total 271,360 168,960 12,500 51,200
Required: Prepare Statement of Liquidation using:
a. Lumpsum Liquidation
b. Installment Liquidation (Prepare Schedule of Safe Payments if needed)
