6. In partnership liquidation the first cash distribution should be made for A) partner capital B) loan to bank C) loan to partner D) Liquidation expenses

Q: 14. Which journal entry holds true for admission of a new partner by purchase of interest? A. Debit…

A: Admission of a partner will decrease the interest of other partners of the firm. When a new partner…

Q: If a partner with a debit capital balance during liquidation is solvent, the   * a. Partner must…

A: Lets understand the basics. Partnership is an agreement between two or more person who works…

Q: Prior to the creation of a partnership, the sole proprietor must first re-evaluate or adjust its…

A: Re-evaluation or Adjustment in Assets or Liability: To determine whether or not there was a net gain…

Q: In a partnership liquidation, a loss from sale of non cash assets is     A.Allocated to the…

A: In case of liquidation of partnership , the following steps are taken:   1. Sale of non cash assets.…

Q: Alex and Bess have been in partnership for many years. The partners, who share profits and losses on…

A: a. Distributed safe cash payments to the partners. Alex, Capital $117,600 (168,000 x 70%) Bess,…

Q: Recording of adjusting entries in partnership firm ensure that: a. The goodwill received by each…

A: Recording of adjustment entries in partnership firm is to ensure that the both revenue recognition…

Q: Increase in the value of bills payable will be: a. Credited to partners' capital account b. Debited…

A: The revaluation account is prepared to adjust the change in values of assets and liabilities.

Q: Reporting changes in partnership capital accounts is similar to reporting changes for

A: Partnership is an association of two or more persons who  owns a business for profit. Profits or…

Q: The share of loss of partners will appear: a.On the credit side of the partners+IBk- capital account…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Closing entries of a partnership include entries to

A: The answer for the multiple choice question and relevant explanation are presented hereunder :…

Q: Debited to partners' capital account

A: Correct Answer :- C Debited to partner capital.

Q: Which of the followine Calculation of New p

A: Whenever there is an admission, retirement or death of a partner, the accounting records of the…

Q: no need to explain. What is a cash priority program?  a. A guideline for the cash distributions made…

A: At the time of liquidation of partnership business, there are some procedural steps that need to be…

Q: In

A: Liquidation of partnership means all the assets of partnership are realised and liabilities are paid…

Q: On Dissolution of a partnership firm, the claims of the partners on their capital will be listed for…

A: Answer

Q: e causes of partnership liquidation? e types of liquidation? Differentiate one from the ofher. e…

A: Liquidate implies a legal closing down by a liquidator however it happens when there are still…

Q: 15. Which statement(s) is incorrect? * -Income summary account is closed directly to capital…

A: Answer: Concept: Partnership firm is the association of two or more person. They agree to share…

Q: Which of the following statements is correct? Options: Each partner has the authority to enter…

A: The partnership is the business form that is owned ad controlled by two or more partners. When the…

Q: roblem Alex and Bess have been in partnership for many years. The partners, who share profits and…

A: Liquidation of partnership Liquidation is a condition that arises because of the death of any…

Q: Recording a write-down from an original partner’s capital of book value to its implied fair market…

A: Write down of capital implies reduction in the capital funded by a partner to the firm in the…

Q: During a liquidation, in what instance when cash may be distributed to any of the other partners?

A: When two or more persons join their hands for one business that is known as partnership.

Q: Which one of the following will be recorded under debit side of the partners' capital account? a.…

A: Solution-   Items that may appear on the debit side of the Capital Account when the capitals are…

Q: Alex and Bess have been in partnership for many years. The partners, who share profits and losses on…

A: Partnership liquidation is a process of dissolving a partnership and allocating the assets and…

Q: In the liquidation of a partnership it is important to (1) distribute cash to the partners, (2) sell…

A: Liquidation of partnership refers to winding up or ending of operations of a partnership or a…

Q: Alex and Bess have been in partnership for many years. The partners, who share profits and losses on…

A: The process of dissolving a partnership and allocating the assets and liabilities among the partners…

Q: . Claims against partners' personal assets by creditors if the partnership can't pay its debts…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: 3- The objective of preparation of income statement of partnership is: a. To show the ratio of…

A: The income statement shows the net income earned by the partnership firm during the year. Net income…

Q: Question Bobby Donal and Bill Spader are discussing the liquidation of a partnership. Bobby…

A: Answer: No, Bobby is not Correct.

Q: Statement I: In the preparation of cash priority program, the partner who is most prone to losses is…

A: Cash  priority program such program designed for the payment compute the amount for safe to the…

Q: The objective of preparation of income statement of partnership is: a. To show how net profit has…

A: The income statement is one of the important financial statements of the business.

Q: Notes: Each group is required to use other related partnership business information unique to each…

A: While preparing the current a/c of the partners, all the items which do not form part of the capital…

Q: Which one of the following is a gain to the partnership firm? a.Interest on drawings b.Interest on…

A: Solution: Interest on capital is expense or division of profit by partnership to partners. Interest…

Q: In which order are partnership assets distributed to the partners? Capital balances, loans, profits…

A: ln case of partnership there is agreement between the partners. they bring capital for operations…

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc. 

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.