Liquidation balance sheet

A liquidation balance sheet is a special form of accounting that is prepared in connection with the dissolution or liquidation of a company. It is used to record the company’s assets and liabilities at the time of liquidation and to ensure that all debts can be settled.

During liquidation, all of the company’s assets are sold in order to settle outstanding liabilities. The liquidation balance sheet therefore shows the realizable value of the assets and ensures that sufficient funds are available after the sale of all assets to cover all liabilities. If any assets remain after all liabilities have been settled, these are distributed among the shareholders or partners in proportion to their shareholding.

The liquidation balance sheet differs from a company’s normal balance sheet as it does not aim to analyze the company’s financial position for ongoing operations, but rather to ensure that all of the company’s creditors are adequately served before assets are distributed to shareholders.

With QVANTUM, you always have an overview of all positions in your company and can easily manage them on the platform.

Liquidity Planning