PROBLEM 1

A B
Capital Bal. in the partnership 500,000 200,000
Total personal assets 1,000,000 1,500,000
Total personal liabilities 1,300,000 1,800,000
Personal networth - 300,000 - 300,000
Total available net assets 200,000 - 100,000

INDIVIDUAL PARTNERS BC PART

A B Assets
1,500,000
Beginning Balances 1,000,000 1,500,000 - 800,000
Payment of liabilities - 1,300,000 - 1,800,000 700,000
Balances - 300,000 - 300,000 - 700,000
Cash distribution to A 500,000
Cash distribution to B 200,000
Balances 200,000 - 100,000

1. A,Capital 500,000

2. B,Capital 200,000

PROBLEM 2
A B
1. Capital Bal. in the partnership 140,000 60,000
Total personal assets 1,000,000 800,000
Total personal liabilities 600,000 700,000
Personal networth 400,000 100,000
Total available net assets 540,000 160,000

INDIVIDUAL PARTNERS BC PART

A B Assets
2,300,000
Beginning Balances 1,000,000 800,000 - 2,300,000
Payment of liabilities 600,000 700,000 -
Balances 400,000 100,000
Payment to partnership
creditors:
A's personal assets - 280,000
B's personal asset - 100,000
Balances 120,000 0
 B, Liab 20,000
100,000

1. A's personal assets 300,000

2. B's personal asset 100,000

3. Partner B personally liable to partner A.

PROBLEM3
1. ASSETS
CASH NONCASH ACCOUNTS PAYABLE
BEFORE LIQUIDATION 200,000 3,400,000 1,120,000
Assets REALIZATION 1,700,000 - 3,400,000
BALANCE 1,900,000 - 1,120,000
LIQUADATION EXPENSES - 10,000
BALANCE 1,890,000 1,120,000
PAYMENT OF LIABILITIES - 1,120,000 - 1,120,000
BALANCE 770,000 - -
RIGHT OF OFFSET
BAL. 770,000
Payment to Amos - 80,000
Balance 690,000
INVESTMENT 34,000
BALANCE 724,000
PAYMENT TO PARTNERS - 724,000
BALANCE -

SALE OF NoNCASH 1,700,000

LIQUIDATION EXPENSE - 10,000
NET CASH PROCEEDS 1,690,000
CARRYING AMT OF NONCASH - 3,400,000
TOTAL LOSE ON SALE - 1,710,000

JOEL(4/10) HOSEA(4/10) AMOS(2/10)

CAPITAL BAL. 950,000 600,000 800,000
RIGHT OF OFFSET 50,000 80,000
TOTAL 950,000 650,000 880,000
ALLOCATION OF LOSS - 684,000 - 684,000 - 342,000
AMTS. RECEIVED 266,000 - 34,000 538,000
ADDITIONAL CONTRI 34,000
BALANCE 266,000 - 538,000

CHECKING:
BEG. BAL OF CASH 200,000
NET PROCEEDS 1,690,000
ADDITIONAL CONTRI 34,000
 PAYMENT TO OUTSIDERS - 1,120,000
CASH AVAILABLE FOR PARTNER 804,000

1. CASH 1,700,000
LOSS ON SALE 1,700,000
NONCASH ASSETS 3,400,000
To record the sale of noncash assets

2. Joel, Capital 680,000

Hosea, Capital 680,000
Amos,Capital 340,000
Loss on sale 1,700,000
To record the distribution of loss on sale

3. Joel, Capital 4,000

Hosea, Capital 4,000
Amos,Capital 2,000
Liquidation expenses 10,000
To record the payment of liquidation expense

4. Payable to Hosea 50,000

Hosea,Capital 50,000
To record Hosea'sright of offset

5. Cash 34,000
Hosea,Capital 34,000
To record the aditional investment

6. Accounts Payable 1,120,000

Cash 1,120,000
To record the settlement of liabilities of outside creditors

7. Joel, Capital 266,000

Amos,Capital 458,000
Cash 724,000
To record the distribution of remaining available cash to the partners

PROBLEM 4
1. 0
2. James,capital 60,000 Before liquidation
Cash 60,000 conversion of Noncash
Balance
Payments to partners
3. John,Capital 40,000 Balance
 Cash 40,000

PROBLEM 5

CASH NONCASH LIABILITIES

Balance before liquidation 20,000 580,000 300,000
conversion of non-cash assets 300,000 - 580,000
and distribution of loss
Balance 320,000 - 300,000
liquidation expenses - 20,000
Balance 300,000 300,000
Payments of liabilities - 300,000 - 300,000
Balance - -
allocation of deficiency to other partners
Balance - - -
Additional contribution of C 6,250
Balance 6,250
Payment of B equity - 6,250
Balance -

Cash 300,000
loss on sale 280,000
Noncash assets 580,000
To record the sale of noncash assets.

A,Capital 56,000
B,Capital 84,000
C,Capital 140,000
Loss on sale 280,000

A,Capital 4,000
B,Capital 6,000
C,Capital 10,000
Liquidation expense 20,000

Liabilities 300,000
Cash 300,000
To record payment to outside creditors

B,Capital 3,750
C,Capital 6,250
A,Capital 10,000
To eliminate capital deficiency of limited partner through general partner
 Cash 6,250
C,capital 6,250
To record additional Investment of C

B,Capital 6,250
Cash 6,250
To record final payment of B's capital bal.

PROBLEM 6
CASH NONCASH LIABILITIES
Balance before liquidation 20,000 580,000 300,000
conversion of non-cash assets 280,000 - 580,000
and distribution of loss
Balance 300,000 - 300,000
liquidation expenses - 20,000
Balance 280,000 300,000
Payments of liabilities - 300,000 - 300,000
Balance - 20,000 -
allocation of deficiency to other partner
Balance - 20,000
Additional Investment of B 20,000
Balance -

Cash 280,000
loss on sale 300,000
Noncash assets 580,000
To record the sale of noncash assets.

A,Capital 4,000
B,Capital 6,000
C,Capital 10,000
Liquidation expense 20,000

Liabilities 300,000
Cash 300,000
To record payment to outside creditors

B,Capital 14,000
A,Capital 14,000
To eliminate capital deficiency of limited partner through general partner

B,Capital 10,000
C,Capital 10,000
To eliminate capital deficiency of insolvent partner through solvent partner
Cash 20,000
B,capital 20,000
To record additional Investment of C

B,Capital 20,000
Cash 20,000
To record final payment of B's capital bal.
 BC PARTNERSHIP
Liabilities A,Capital B,capital
800,000 500,000 200,000
- 800,000
- 500,000 200,000
- 500,000 - 200,000
- -

BC PARTNERSHIP
Liabilities A,Capital B,capital
2,500,000 140,000 60,000
- 2,300,000
200,000 140,000 60,000
- 140,000 140,000
- 60,000 60,000
0 280,000 120,000
- 280,000 - 100,000
0 20,000
- 20,000 - 20,000
 - 20,000 0
20,000
0

CAPITAL
PAYABLE TO HOSE PAY. TO AMOS JOEL(4/10) HOSEA(4/10) AMOS(2/10)
50,000 80,000 950,000 600,000 800,000
- 680,000 - 680,000 - 340,000
50,000 80,000 270,000 - 80,000 460,000
- 4,000 - 4,000 - 2,000
50,000 80,000 266,000 - 84,000 458,000

50,000 80,000 266,000 - 84,000 458,000

- 50,000 50,000
- 80,000 266,000 - 34,000 458,000
- 80,000

34,000
266,000 - 458,000
- 266,000 - 458,000
- -

TOTAL
2,350,000
130,000
2,480,000
- 1,710,000
770,000
34,000
804,000
Cash Noncash Liablities James,capital John,capital
100,000 - 60,000 40000
100,000 - 100,000
100,000 - - 60,000 40000
- 100,000 - 60,000 -40000
- - -
 A,capital(20/100) B,Capital(30/100) C,Capital(50/100)
50,000 100,000 150,000
- 56,000 - 84,000 - 140,000

- 6,000 16,000 10,000

- 4,000 - 6,000 - 10,000
- 10,000 10,000 -

- 10,000 10,000
10,000 - 3,750 - 6,250
- 6,250 - 6,250
6,250
6,250 -
- 6,250
-
 A,capital(20/100) B,Capital(30/100) C,Capital(50/100)
50,000 100,000 150,000
- 60,000 - 90,000 - 150,000

- 10,000 10,000 -
- 4,000 - 6,000 - 10,000
- 14,000 4,000 - 10,000

- 14,000 4,000 - 10,000

14,000 - 24,000 10,000
- 20,000 -
20,000
-