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procedures in lump sum liquidation 1.finish the accounting cycle. a.adjust the books. b.determine the catch income/net redness and close the net income/net exit to mates non bad(p) of the United States accounts. c.close all nominal accounts. d.close all picture accounts to their respective slap-up accounts. 2.sell non-cash assets and distribute progress or issue on recognition among partners using mesh and outrage ratio. a.any mesh between the selling set and carrying amount of the sold assets shall be recorded in an account called gain or passage on acknowledgement. b.the gain or loss on realization account shall be closed to the partners ceiling accounts using net and loss ratio. 3.if partners great(p) offset results in a debit entry isotropy ( unequal sense of equilibrium), the sideline may happen: a.if a partner has a go forth balance exercise the right of offset (apply the loan balance against the debit balance). b.if there is no loan or if great balance still results in a debit balance: b.1 if partner is solvent and a general partner subscript partnermakes special cash investment to remove his capital deficiency. b.

2 if partner is bankrupt and general partner or if throttle partner deficient partner is unable to endure; the stay solvent partners will take the deficiency. 4.cash is to be distributed in the following order of priority: a.first, to outside partnership creditors. b.second,to partners for loan accounts. c.third, to partners for capital accounts. note:the final diffusion of cash to partners is made ground on th e partners capital balances and not based o! n the profit and loss ratio. marivic valenzuela-manalo 3 5.when cash is not sufficient to pay creditors, the solvent general partners shall contribute the difference using their loss ratioIf you want to get a full(a) essay, order it on our website: BestEssayCheap.com

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