ADVANCED FINANCIAL ACCOUNTING-ACCESS
ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
Question
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Chapter 16, Problem 16.5E
To determine

Installment liquidation: takes place for several months to complete, and periodic or installment payments are made to the partners during the liquidation period because they require funds for personal purposes. Most partnership liquidations take place over an extended period in order to obtain the largest possible amount from realization of the assets.

Instalment liquidations involve a distribution of cash to partners before complete liquidation of assets occurs, they are two methods for ensuring fairness and equality in making cash distributions (1) safe payment schedule and (2) cash distribution plan.

A safe payment schedule determines what amounts may be safely distributed to which partner without violating any of the principles of liquidation.

how are partner’s personal payments to the partnership creditors accounted for a partnership’s books.

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Chapter 16 Solutions

ADVANCED FINANCIAL ACCOUNTING-ACCESS

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