Liquidation balance
April 13, 2020 | 25,00 EUR | answered by Steuerberater Knut Christiansen
A KG is being liquidated. There is a limited partner and a general partner involved in the KG. Both have made equal contributions. Due to compensation for services, withdrawals, profits and losses, the capital accounts as of 31.12.2019 are, for example, 10 thousand and 30 thousand.
In the opening balance sheet of the KG in liquidation as of 01.01.2020, all fixed assets are recorded at their already known selling prices.
What do the capital accounts look like?
Do I have to divide them in the same proportion (as the original contribution) or in proportion to the capital accounts as of 31.12.2019, for example 1:3?
Thank you.
Good evening,
the capital accounts as of January 1, 2020 should be increased by the respective hidden reserves in the assets compared to December 31, 2019. The contractual profit distribution key is to be used as the basis. For example, if this is 50% each, the capital accounts would also need to be increased by 50% of the hidden reserves (the difference between the selling price and the book value).
Example: uncovered hidden reserves from the sales proceeds: 10,000 EUR and profit distribution key 50:50
Capital account 1: 10,000 EUR plus 5,000 EUR = 15,000 EUR
Capital account 2: 30,000 EUR plus 5,000 EUR = 35,000 EUR
I hope this answers your question, if not, please feel free to reach out again.
Please note that this forum cannot replace personal advice, but serves as an initial tax assessment.
Kind regards,
Knut Christiansen
Tax advisor
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