What Is a Cash Liquidation Distribution?
It is a method used to measure the distribution order of each partner during the staged liquidation and to calculate each time the assets of the partnership are allocated. Because the security payment form is prepared once for each distribution, the procedures are more cumbersome, and it cannot provide information on the order and amount of each partner's cash distribution. The cash distribution plan can solve these problems.
Cash distribution plan
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- Chinese name
- Cash distribution plan
- Foreign name
- cash distribution plan
- nickname
- Secure payment plan
- Classification
- Cash management
- It is a method used to measure the distribution order of each partner during the staged liquidation and to calculate each time the assets of the partnership are allocated. Because the security payment form is prepared once for each distribution, the procedures are more cumbersome, and it cannot provide information on the order and amount of each partner's cash distribution. The cash distribution plan can solve these problems.
- It is a method used to measure the distribution order of each partner during the staged liquidation and to calculate each time the assets of the partnership are allocated. Because the security payment form is prepared once for each distribution, the procedures are more cumbersome, and it cannot provide information on the order and amount of each partner's cash distribution. The cash distribution plan can solve these problems.
- The preparation of a cash distribution plan also requires the partner's capital to be combined with his claims in the partnership, and all potential losses and liquidation costs to be expected.
- The specific steps are:
- (1) Determine the strength of the partners' ability to bear losses, the formula is: the partner's loss potential = the partner's equity balance / the partner's profit and loss distribution ratio, and each partner is determined by the strength of the ability to bear Allocation procedure.
- (2) Assume that the equity of the partner with the weakest ability to bear the loss is zero, and share it with each partner according to the profit and loss distribution ratio of each partner, and then offset the balance of equity; The loss of partner's equity is zero, and the remaining partners' equity is written off proportionately. This process is repeated until the last partner is left, and that partner is the first partner to receive cash in the distribution.
- (3) Calculate the distribution ratio of partners and prepare a cash distribution plan.