CORPORATE LIQUIDATION

1. Statement of Affairs (Before liquidation)

Assets pledged to FSL Pxx Liquidation expenses Pxx
FSL (xx) Payment to employees (salaries) xx
Excess assets xx Payment to government (taxes) xx
Free assets xx Unsecured w/ priority Pxx
Total Free Assets xx
Unsecured w/ priority (xx) PSL Pxx
Net Free Assets xx Assets pledged to PSL (xx)
Unsecured w/o priority (xx) Excess liability xx
Estimated deficiency Pxx Unsecured liabilities xx
Unsecured w/o priority Pxx

Estimated recovery percentage = Net Free Assets s = xx%

Unsecured w/o priority

2. Statement of Realization and Liquidation

ASSETS
Assets to be Realized (Assets, beg) @BV Assets Realized (Decrease in assets) @ realizable value
Assets Acquired (Increase in assets) @acquisition cost Assets Not Realized (Assets, end) @BV
LIABILITIES
Liabilities Liquidated (Decrease in Liabilities) Liabilities to be Liquidated (Liabilities, beg) @ BV
Liabilities not Liquidated (Liabilities, end) Liabilities Incurred (Increase in Liabilities) @ acq cost
SUPPLEMENTARY
Supplementary debits Supplementary credits

›Increase in assets/liabilities only relates to non-cash.

›If the increases in assets/liabilities are realized/liquidated in the same month, there is no effect on assets/liabilities
section and is to be included in supplementary section. (can be analyzed using entries)
›If the balancing figure is on the credit side it is to be regarded as loss. Vice-versa.

a. Estate Equity
Estate Equity, beg Pxx
Gains (loss) on realization xx
Estate Equity. End Pxx

Or
Deficit (RE) Pxx
Gain (loss) on realization xx
Adjusted deficit xx
Other capital accounts xx
Estate Equity, end Pxx