Question

KKG Partnership established by Kris, Ken and Gres has been agreed to be liquidated as of January 1, 2017. Financial position shortly before liquidation as follows (in thousands of rupiah):
Cash
160.000
Liabilities
200.000
Inventory
440.000
Loan from Gres
100.000
Plant Assets
1.000.000
Kris's Capital (40%)
500.000
Other Assets
400.000
Ken's Capital (30%)
600.000

Gres's Capital (30%)
600.000
Total
2.000.000
Total
2.000.000

The liquidation process is carried out gradually for three months, namely:

January : Plant assets with a book value of Rp 600,000,000 sold for Rp 480,000,000
February : Supplies are sold for Rp 500,000,000.
All existing cash is distributed unless Rp 10,000,000 is withheld for expenses
Liquidation.   Liquidation fees will be paid in March.
March : The remaining plant assets are sold for Rp 340,000,000 and other assets are sold for
Rp420.000.000

Requested: Make a Statement of Liquidation and its safe payment schedule.

Answer 1

Statement of Lquidation

(in Thousand of Rupiah)

Particular	Cash	Inventory	Plant Asset	Other Assets	Liab.	Loan from Gres
Account Balances, Jan1, 2017	160,000	440,000	1,000,000	400,000	200,000	100,000
Plant Assets Sold	480,000		(600,000)
Balance after Plant Sold in January	640,000	440,000	400,000	400,000	200,000	100,000
Supplies Sold in February	500,000	(440,000)
Balance After Supplies	1,140,000	0	400,000	400,000	200,000	100,000
Liabilities paid	(200,000)				(200,000)	100,000
Balance after liab. paid	940,000	0	400,000	400,000	0	100,000
Gres loan paid	100,000	0	400,000	400,000	0	(100,000)
Balance after Gres loan	840,000	0	400,000	400,000	0	0
Distribution of All Cash keeping Rp 10,000 for liquidation expenses	(830,000)
Balance	10,000	0	400,000	400,000	0	0
Liquidation expenses paid	(10,000)
Balance after Liquidation expenses paid	0	0	400,000	400,000	0	0
Remaining plant sold	340,000		(400,000)	400,000	0	0
Balance after Remaining plant sold	340,000	0	0	400,000	0	0
Other Assets sold Rp 420,000	420,000			(400,000)
Balance After other Assets Sold	760,000	0	0	0	0	0
Distribuation of Remaining cash of Rp 760,000	(760,000)	0	0	0	0	0
Final Balance	0	0	0	0	0	0

Safe Payment Schedule

Particular	Kris(40%)	Ken(30%)	Gres(30%)
Account Balance, Jan1 , 2017	500,000	600,000	600,000
Loss on sale of Plant Rp 120,000	(48,000)	(36,000)	(36,000)
Balance after Plant Sold in January	452,000	564,000	564,000
Profit on Sale of Supplies Rp 60,000	24,000	18,000	18,000
Balance after Supplies Sold	476,000	582,000	582,000
Distribution of Cash of Rp 830,000	332,000	249,000	249,000
Balance	144,000	333,000	333,000
Liquidation expenses of Rp 10,000 paid	(4,000)	(3,000)	(3,000)
Balance after Liquidation expenses	140,000	330,000	330,000
Loss of Rp 60,000 on plant sold in March	(24,000)	(18,000)	(18,000)
Balance After plant sold	116,000	312,000	312,000
Profit on sale of other assets Rp 20000	8,000	6,000	6,000
Balance after Other assets sold	124,000	318,000	318,000
Remaining cash Ditributed of Rp 760,000	124,000	318,000	318,000
Final balance	0	0	0