9. Statement 1 – In installment liquidation, cash priority program and schedule of safe payment would result to different available cash to be distributed to partners. Statement 2 – The partner with the highest capital balance will always have the highest share in the net profit/loss of the partnership. a. True; False b. False; True c. True; True d. False; False
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.
9. Statement 1 – In installment liquidation, cash priority program and schedule of safe payment would
result
to different available cash to be distributed to partners.
Statement 2 – The partner with the highest capital balance will always have the highest share in the net
a. True; False
b. False; True
c. True; True
d. False; False
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