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    Liquidation Of My Partnership

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    My partnership is not going well, and me, (Partner A) and my 2 other partners, (Partner B) and (Partner C), have decided to liquidate the partnership. Partner (C) is a little concerned. While Partner (A) has plenty of money, Partner (B) is personally insolvent. The partnership sells the apartment building for $165,000, which is a loss from its book value of $189,000.

    Capital Capital Capital
    Profit And loss Percent Cash Assets Liabilities Partner A Partner B Partner C Total
    40% 30% 30%

    Balances 2,000 189,000 -80,000 -64,000 -5,000 -42,000 0

    Using these balances, show the sale of the apartment building, payment of liabilities, and payments to the partners in liquidation of the partnership.

    In a one page memo, comment on Partner B's status in relation to the other partners.

    1-Discuss the accounting issues involved in the formation and dissolution of partnerships.
    2-Solve complex accounting problems relating to general and limited partnerships.
    3-Use effective communication techniques.

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    Solution to your problem is provided in a separate excel file attached herewith. It contains the ...

    Solution Summary

    The solution discusses liquidation of a partnership.