高级会计学（第10版）教师手册 Beams10e-IM16

Chapter16

PARTNERSHIPLIQUIDATION

ChapterOutline

PARTNERSHIPLIQUIDATION

AApartnershipliquidationistheterminationofapartnershipasabusinessentity.

BOverviewofliquidationprocessforasolventpartnership(partnershipassetsaregreater

thanpartnershipliabilities):

1Noncashassetsareconvertedintocash.

2Gainsandlossesandliquidatingexpensesincurredduringtheliquidation

periodarerecognized.

3Liabilitiesaresettled.

4Cashisdistributedtothepartnersaccordingtothefinalbalancesintheir

capitalaccounts.

COrderofdistributionofassetsinaliquidationofapartnership

1Amountsowedtocreditorsotherthanpartners

2Amountsduetopartnersliquidatingtheircapitalbalancesuponconclusion

oftheliquidationofpartnershipassetsandliabilities

aAllprofits,losses,anddrawingbalancesareclosedtocapitalaccounts

beforeanydistributionsaremade.

DPartnershipliquidationstatementisasummaryoftransactionsandbalancesduring

theliquidationstage.

EDebitcapitalbalancesinasolventpartnershipmayresultfromrecognizinglosses

duringtheliquidationprocess.

1Thepartnerswithdebitbalancesarenormallyobligatedtousetheir

personalassetstosettletheirpartnershipobligations.

©2009PearsonEducation,Inc.publishingasPrenticeMali178

2Ifthepartnerswithdebitcapitalbalanceshaveinadequatepersonalassets,the

partnerswithcreditbalancesnormallyassumelossesequaltothedebitcapital

balancesandsharethelossesintheirrelativeprofitandlosssharingratios.

3Ifthepartnershiphasaloanbalancefromaninsolventpartner

aNocashshouldbedistributedfortheloanwithoutagreementfromall

partners.

bApartner'spersonalcreditorshaveapriorclaimonpersonalassets.

SCHEDULEOFSAFEPAYMENTS(Illustration164)

ASafepaymentsaredistributionstopartnersthatcanbemadewiththeassurance

thatanyresourcesdistributedwillnothavetobereturnedtothepartnership

(assumesaworst-casescenario)

BIncalculatingsafepayments,thefollowingassumptionsaremade:

1Allpartnersareconsideredpersonallyinsolvent.

2Allnoncashassetsareconsideredlosses.

3Somecashmaybewithheldtocoverliquidatingexpenses,unrecordedliabilities,

andgeneralcontingencies.Thecashwithheldisconsideredalossin

determiningsafepayments.

CThesafepaymentsschedulefordeterminingadvancedistributionstopartnersis

preparedafternon-partnerliabilitieshavebeenpaid.

1Theschedulebeginswithpartners9equity

aEachpartner'scapitalaccountplusloanstothepartnershipandless

loansfromthepartnership.

2Possiblelosses(fromnoncashassetsandcashwithheldbalances)areallocated

tothepartnersintheprofitandlosssharingratiosanddeductedfromthe

equitybalances.

3Anynegativepartnerequityisallocatedtopartnerswithequityintheir

relativeprofitandlosssharingratios.

4Step3isrepeateduntilnoremainingpartnershowsnegativeequity.

5Theamountshownforpartnerswithequitywillequalthecashavailablefor

distribution.

6Advancedistributionsrequireapprovalfromallpartners.

INSTALLMENTLIQUIDATION

AInstallmentliquidationsinvolvethedistributionofcashtopartnersasitbecomes

availableduringtheliquidationperiodandbeforeallliquidationgainsandlosses

havebeenrealized.

1Nocashisdistributedtopartnersuntilallnonpartnerliabilitieshavebeen

paid.

2Paymentstopartnerscanbedeterminedbyasafepaymentscheduleforeach

installmentdistribution.

3Whenthepartners9capitalaccountsarealignedintheprofitandlosssharing

ratios,safepaymentscheduleswillnotbenecessary.

4Onceallthepartnersareincludedinaninstallmentdistribution,future

installmentpaymentstothepartnerswillbeintheprofitsharingratios.Thus,

additionalsafepaymentschedulesarenotnecessary.

PARNTERVULNERABILITYRANKING

ACashdistributionplansinvolverankingpartnersintermsoftheirvulnerabilityto

possiblelosses,preparingascheduleofassumedlossabsorption,andpreparingacash

distributionplan.

BHowvulnerableapartneristopossiblelosses(vulnerabilityranking)isdeterminedby

dividingeachpartner'sequitybyhisorherprofitsharingratio.

1Thisamountisthemaximumlossthatthepartnercouldabsorbwithout

reducinghisorherequitybelowzero.

CAscheduleofassumedlossabsorptionispreparedusingthevulnerabilityrankings.

1Theschedulebeginswithpre-liquidationequitiesandchargeseachpartner's

equitywithitsshareofthepartnershiplossthatwouldexactlyeliminatethe

equityofthemostvulnerablepartner.

©2009PearsonEducation,Inc.publishingasPrenticeMali180

2Eachremainingpartner'sequityischargedwithitsshareofthelossthat

wouldexactlyeliminatetheequityofthenextmostvulnerablepartner.

3Thisprocessisrepeateduntiltheequitiesofallbuttheleastvulnerablepartner

havebeenreducedtozero.

DAcashdistributionplanispreparedfromthescheduleofassumedlossabsorption.

1Undertheplan,thefirstcashavailablefordistributiongoestopaynonpartner

liabilities.

2Next,theleastvulnerablepartnerwillreceiveanamountofcashthatwill

alignthatpartner'sequityintherelativeprofitandlosssharingratiowiththe

nextleastvulnerablepartner.

3Thisprocessisrepeateduntilallpartners9capitalbalancesarealigned.

4Remainingdistributionsareintheprofitandlosssharingratio.

EAcashdistributionschedulecanbepreparedfromthecashdistributionplan.The

scheduleshowshowcashisdistributedasitbecomesavailable.

INSOLVENTPARTNERSANDPARTNERSHIPS

ATheRUPAspecifiesprioritiesfbrthedistributionofpartnershipassetsinliquidation

andforthedistributionofthepersonalassets.

BPartnershipcreditorsmustfirstseekrecoveryoftheirclaimsfrompartnership

property.

1Creditorsofindividualpartnersmustfirstseekrecoveryoftheirclaims

fromindividualproperty.

COftenwithasolventpartnership,butinsolventpartner:

1Partnershipcreditorsrecovertheirclaimsfrompartnershipproperty.

2Aninsolventpartner'spersonalcreditorshaveaclaimagainstpartnership

assetstotheextentoftheinsolventpartner'sequityinsuchassets.

3Creditorsofaninsolventpartnerwithacreditcapitalbalancemayhaveaclaim

againstthepersonalassetsofasolventpartnerwithadebitcapitalbalancetothe

extentofthedebitcapitalbalance.

4Partnerswithdebitcapitalbalancesareobligatedtothepartnershipforthe

amountofthedebitbalance;however,ifthepartnerwiththedebitbalanceis

insolvent,thatpartner'spersonalassetswillgotohispersonalcreditors.

DescriptionofassignmentmaterialMinutes

Questions(12)

Exercises(14)

E16-1[Folly/Frill]Scheduleofcashdistribution12

El6-2[Mike/Nancy/Okey]Journalentriesforliquidationevents12

El6-3[Fred/Ethel/Lucy]Distributionofavailablecash(withcontingencyfund)12

El6-4[Jan/Kim/Lee]Distributionofavailablecash(loantopartner)15

El6-5[Anita/Bernice/Colleen]Correctcapitalbalancespriortoliquidation5

El6-6[Ali/Bart/Carrie]Correctcapitalbalancespriortoliquidation5

El6-7[Evers/Freda/Grace]Safepaymentsscheduletodistributecash(with15

contingencyfund)

El6-8[Jerry/Joan/Jill]Safepaymentscheduleandliquidationstatement20

El6-9[Alice/Betty/Carle]Prepareascheduleforthephaseoutofaninsolvent20

partnership(creditorsrecoverfromoneofthepartners)

E16-10[Daniel/Eric/Fred]Prepareascheduletophaseoutaninsolventpartnership20

andclosebooks(creditorsproceedagainstpartner'spersonalassets)

E16-11[Ace/Ben/Cid/Don]Liquidationstatementinvolvingrecoveryfrom25

personalassets

E16-12[Denver/Elsie/Fannie/George]Prepareasafepaymentschedule20

E16-13[Quen/Reed/Stac]3MCproblem-typequestions(vulnerabilityranks15

anddistributionofavailablecash)

E16-146MCgeneralandproblem-typequestions25

Problems(12)

P16-1[Barney/Betty/Rubble]Journalentries(installmentdistributions)20

Pl6-2[Chan/Dickerson/Grunther]Prepareacashpredistributionplan20

Pl6-3[Fred/FlintAVilma]Prepareacashpredistributionplan20

Pl6-4[Gary/Henry/Illa/JosephlPrepareacashdistributionplanandcalculate35

thecashdistributionaftersomeassetsaresold

Pl6-5[Eli/Joe/Ned]Prepareastatementofpartnershipliquidation30

Pl6-6[Jones/Smith/Tandy]Prepareastatementofpartnershipliquidation(simple40

liquidation)

Pl6-7[Len/Mary//Nell]Preparecashdistributionplananddeterminecash50

distributionaftersomeassetsaresold

Pl6-8[Jason/Kelly/Becky]Statementofpartnershipliquidationandsafepayment

Schedule45

©2009PearsonEducation,Inc.publishingasPrenticeHall]82

Pl6-9[Roger/Susan/Tom]Prepareastatementofpartnershipliquidationwith45

supportingschedulesforeachdistribution

P16-10[Rob/Tom/Val]Prepareastatementofpartnershipliquidation55

P16-11[Jee/Moore/Olsen]Closingentries,cashdistributionplanandcash50

distributionschedule

P16-12[Beams/Plank/Timbers]Statementofpartnershipliquidation(safe70

paymentsschedulesused)

InternetAssignment:Performaninternetsearchandfindaninvestmentcluborganizedasa

partnership.Reviewtheby-lawsandprovisionsmadeforthedeath/retirementofapartnerand

theultimateliquidationofthepartnership.

Illustration16-1

PARTNERSHIPDISSOLUTIONANDLIQUIDATION

Jas,Kal,andLoudecidetodissolvetheirpartnershiponMay1,20X7andtoliquidatetheir

partnershipassoonaspossibleafterMay1.Acondensedbalancesheetwithprofitsharing

percentagesisasfollows:

CondensedBalanceSheetasofMay1,20X7

AssetsEquities

Cash$50,000Accountspayable$120,000

Inventory(perbooks)100,000Jascapital20%40,000

Otherassets(perbooks)130,000Kalcapital40%80,000

Goodwill20,000Loucapital40%60,000

$300,000$3(X),000

Additionalinformation

Theinventorywassoldfor$70,000duringMay.

Otherassetswithabookvalueof$90,000weresoldfor$50,000.

OnJune1thepartnersagreetodistributeavailablecashimmediatelyexceptfora

$10,000contingencyfund.

AppropriatedistributionsarebasedonaStatementofPartnershipLiquidationandaSafe

PaymentsSchedule.

©2009PearsonEducation,Inc.publishingasPrenticeMali184

Jas,Kal,andLouPartnership

StatementofPartnershipLiquidation

fromMay1toJune1,20X7

CashNoncashPriorityJasCapitalKalCapitalLouCapital

AssetsClaims20%40%40%

Balances:May1$50,00()$250,000$120,000$40,000$80,00()$60,000

Goodwillwrite-off(20,000)