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14 If a partner has a capital deficiency and does not eliminate it,

14 If a partner has a capital deficiency and does not eliminate it,

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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14 If a partner has a capital deficiency and does not have the personal resources to eliminate it, A) neither the creditors nor the other partners will have to absorb the capital deficiency. B) the other partners will have to absorb the capital deficiency on the basis of their respective income sharing ratios. C) the creditors will have to absorb the capital deficiency. D) the other partners will absorb the capital deficiency on the basis of their respective capital balances. 15 Partners Y and Z receive a salary of $15,000 and $30,000, respectively, and share income and losses in a 2:1 ratio, respectively. If the partnership suffers a $15,000 net loss in 2021, the entry to close the income or loss into their capital accounts is: A) Y, Capital $ Z, Capital $ Income Summary B) Y, Capital.00 $ Z, Capital Income Summary C) Y, Capital Z, Capital Income Summary 000, D) Y, Capital Z, Capital Income Summary E) None of the above D000 000 PI $ $ $ 15,000 30,000 25,000 Visma 10,000 5,000 20,000 $ $ $ $ $ $ 45,000 10,000 15,000 15,000 10,000 10,000
Transcribed Image Text:14 If a partner has a capital deficiency and does not have the personal resources to eliminate it, A) neither the creditors nor the other partners will have to absorb the capital deficiency. B) the other partners will have to absorb the capital deficiency on the basis of their respective income sharing ratios. C) the creditors will have to absorb the capital deficiency. D) the other partners will absorb the capital deficiency on the basis of their respective capital balances. 15 Partners Y and Z receive a salary of $15,000 and $30,000, respectively, and share income and losses in a 2:1 ratio, respectively. If the partnership suffers a $15,000 net loss in 2021, the entry to close the income or loss into their capital accounts is: A) Y, Capital $ Z, Capital $ Income Summary B) Y, Capital.00 $ Z, Capital Income Summary C) Y, Capital Z, Capital Income Summary 000, D) Y, Capital Z, Capital Income Summary E) None of the above D000 000 PI $ $ $ 15,000 30,000 25,000 Visma 10,000 5,000 20,000 $ $ $ $ $ $ 45,000 10,000 15,000 15,000 10,000 10,000
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