The debit of the liquidation expense account registers all liquidation expenses during the liquidation period. At the end of liquidation, the total amount will be transferred from the credit of the account to the debit of liquidation profit and loss, and there is no balance in this account. Liquidation profit and loss is a profit and loss account, which is used to account for all profits and losses realized during the liquidation period of an enterprise. ?
Extended data:
Matters needing attention in the company's cancellation and liquidation statements:
If the liquidation group fails to perform its liquidation obligations or intentionally or grossly neglects to cause losses to creditors, it shall bear legal responsibilities: if it cancels the remarks and promises to the debtor of the company, it shall bear joint and several liability for repayment; If losses are caused to creditors due to intentional or gross negligence, they shall be liable for compensation.
Generally speaking, the liability should not exceed the total creditor's rights, but the liability for compensation can exceed the total creditor's rights, and the losses caused by liquidation are unpredictable.
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