Partnership Accounting for Liquidations, Can these two partners require the partnership to be terminated

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Business Finance

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Assume that because of a new law, the types of significant transactions a partnership engages in are no longer lawful. Two of the five partners wish to wind up and terminate the partnership. Discuss the following:

  1. Can these two partners require the partnership to be terminated?
  2. Discuss the accounting for a liquidation where there is no deficit.
  3. Discuss how the accounting differs if there is a deficit in one of the partner’s capital accounts
  4. How would the accounting for a liquidation differ for a lump-sum payment vs. installment payments?

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Partnership accounting for liquidation
Question one: The partnership is supposed to be terminated because of the new law in the
country. The decision by the two partners is therefore in line with the new law that was
introduced. However normally the partnership is supposed to be dissolved when one partner
formally ad...

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