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.
Objective
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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The solution discusses liquidation of a partnership.
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