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    AFAR - Corporate Liquidation

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    Kent Raysil Pamaong
    This document contains information about the liquidation of a partnership and corporation. It includes details on calculating the maximum possible loss and total cash paid to partners for the partnership liquidation. For the corporate liquidation, it provides formulas and steps for determining the recovery rate and amount for unsecured liabilities, estimated deficiency to creditors, and estimated amount recoverable by stockholders. It also outlines the order of priority for unsecured liabilities with priority and calculations for the profit/loss of the trustee and estate deficit/equity.

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    AFAR - Corporate Liquidation

    Uploaded by

    Kent Raysil Pamaong
    169 views1 page
    This document contains information about the liquidation of a partnership and corporation. It includes details on calculating the maximum possible loss and total cash paid to partners for the partnership liquidation. For the corporate liquidation, it provides formulas and steps for determining the recovery rate and amount for unsecured liabilities, estimated deficiency to creditors, and estimated amount recoverable by stockholders. It also outlines the order of priority for unsecured liabilities with priority and calculations for the profit/loss of the trustee and estate deficit/equity.

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    This document contains information about the liquidation of a partnership and corporation. It includes details on calculating the maximum possible loss and total cash paid to partners for the partnership liquidation. For the corporate liquidation, it provides formulas and steps for determining the recovery rate and amount for unsecured liabilities, estimated deficiency to creditors, and estimated amount recoverable by stockholders. It also outlines the order of priority for unsecured liabilities with priority and calculations for the profit/loss of the trustee and estate deficit/equity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    169 views1 page

    AFAR - Corporate Liquidation

    Uploaded by

    Kent Raysil Pamaong
    This document contains information about the liquidation of a partnership and corporation. It includes details on calculating the maximum possible loss and total cash paid to partners for the partnership liquidation. For the corporate liquidation, it provides formulas and steps for determining the recovery rate and amount for unsecured liabilities, estimated deficiency to creditors, and estimated amount recoverable by stockholders. It also outlines the order of priority for unsecured liabilities with priority and calculations for the profit/loss of the trustee and estate deficit/equity.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    AFAR – PARTNERSHIP LIQUIDATION

    Total interest of partners xx


    Gain/loss on realization xx/(xx)
    Liquidation expenses (xx)
    Maximum possible loss (MPL):
    Estimated liquidation expenses xx
    Remaining non-cash asset xx. (xx)
    Condoned Liability xx
    Total cash paid to partners xx

    AFAR – CORPORATE LIQUIDATION


    Cash on hand RV of NCAS xx
    Less prioritized claims:
    Fully secured creditors xx
    Secured portion of PS creditors xx
    Unsecured portion w/ priority xx. (xx)
    (a) Cash available for unsecured liabilities xx
    (b) Less: unsecured liabilities
    Unsecured portion from PS creditors xx
    Unsecured liabilities w/o priority xx (xx)
    Estimated deficiency to creditors xx

    (a)/(b) x 100 = recovery rate for unsecured liabilities


    (a)/(b) = recovery amountt per peso of unsecured liabilities

    Estimated loss on sale of NCA xx


    *Contingent liabilities xx
    Estimated gross loss xx
    Less: Estimated gain on sale of NCA xx
    *Contingent assets xx (xx)
    (x) Estimated net loss (xx)
    (y) Compare with CA of SHE

    If IF (x) and (y) are equal amounts, available cash covers exactly
    outstanding liabilities; no defi- ciency to creditors AND no amount is
    recoverable by stockholders.

    IF (x) is more than (y), the peso amount difference is an Estimated


    Deficiency to creditors

    IF (x) is less than (y), the peso amount difference is an estimated amount
    recoverable by Stockholders.

    *Contingent liabilities = unrecorded admin and liquidation expenses


    *Contigent assets = unrecorded assets with FMVs

    Order of priority of unsecured liabilities with priority:


    1. Administrative expenses related to liquidation
    2. Salaries and wages
    3. Taxes payable
    4. Others

    P/L of trustee = total debits – total credits


    Deficit = RE
    Estate deficit/equity = SHE -/+ RE

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