. S1: The dissolution of a partnership occurs only when the partnership is terminating operations and going out of business. S2: Bonus paid to a new partner result in a reduction to the capital accounts of the existing partners in proportion to their capital ratio. a. S1 is false, S2 is true b. Both statements are true c. Both statements are false d. S1 is true, S2 is false
. S1: The dissolution of a partnership occurs only when the partnership is terminating operations and going out of business. S2: Bonus paid to a new partner result in a reduction to the capital accounts of the existing partners in proportion to their capital ratio. a. S1 is false, S2 is true b. Both statements are true c. Both statements are false d. S1 is true, S2 is false
. S1: The dissolution of a partnership occurs only when the partnership is terminating operations and going out of business. S2: Bonus paid to a new partner result in a reduction to the capital accounts of the existing partners in proportion to their capital ratio. a. S1 is false, S2 is true b. Both statements are true c. Both statements are false d. S1 is true, S2 is false
1. S1: The dissolution of a partnership occurs only when the partnership is terminating operations and going out of business. S2: Bonus paid to a new partner result in a reduction to the capital accounts of the existing partners in proportion to their capital ratio.
a. S1 is false, S2 is true b. Both statements are true c. Both statements are false d. S1 is true, S2 is false
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.
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