When two or more sole proprietors form a partnership, the following are correct, except When a machine is contributed to the parthership, any related accumulated depreciation must not be recognizes in the books of the partnership once it is recognized. When the partners agreed to decrease the value of an accounts receivable and there's a related allowance for doubtful accounts. the allowance account is increased to reflect the adjustment. Liabilities assumed by the partnership are credited in the sole propnetor books of the partner who will transfer it to the partnership books. OWhen a partner contributes cash to the partnership. it is always recorded at it s face value.
When two or more sole proprietors form a partnership, the following are correct, except When a machine is contributed to the parthership, any related accumulated depreciation must not be recognizes in the books of the partnership once it is recognized. When the partners agreed to decrease the value of an accounts receivable and there's a related allowance for doubtful accounts. the allowance account is increased to reflect the adjustment. Liabilities assumed by the partnership are credited in the sole propnetor books of the partner who will transfer it to the partnership books. OWhen a partner contributes cash to the partnership. it is always recorded at it s face value.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 47P
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