Le business dissolution process is a complex procedure, which involves Notions sometimes difficult to grasp. We can hear, for example, of the liquidation result. However, this notion can refer to different types of results. We distinguish the result of operations liquidation” of the result “ liquidation“… So what are the main differences between these two terms? Here is a precise and complete explanation to this question.
Result of the liquidation procedure determined by the operations carried out in the meantime
Le profit or perte linked to the dissolution of a company and the result of liquidation operations. These are the actions made during liquidation period, which begins with the dissolution of the company and ends when the partners approve the liquidation accounts, distribute the result and pronounce the final closure of the procedure. These operations include the assignments made by the liquidator during the liquidation and which concern the fixed assets and stocks remaining. The result of liquidation operations corresponds to the difference between the proceeds from the disposal of assets and their purchase cost less depreciation.
The liquidator must then "pay off the creditors", i.e. settle debts (suppliers, tax, social, etc.) to be able to establish the liquidation balance sheet and calculate the result of the procedure of liquidation.
The liquidation result is the end point of the liquidation
The liquidation result is in fact the final result of the liquidation. This is the last estimate made by the liquidator before the company disappears. Its amount must be recorded in the liquidation report. The ultimate decision of the partners will relate in particular to its division and division of the capital of the liquidated company.
In practice, it is very easy to determine the final outcome of a liquidation. It suffices to obtain the single liquidation account drawn up by the liquidator (balance sheet), to take note of the amount of the equity and from subtract le capital. By difference, we conclude that the liquidation result includes all undistributed profits (reserves, retained earnings, etc.).
The liquidation result therefore includes, among other things, the result of liquidation operations. On the other hand, it does not take social capital into account. Its amount will be used, in fact, to reimburse the partners for their contributions. We are talking about liquidation bonus when the liquidation result is greater than the share capital. Otherwise, it is a liquidation malpractice.
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