After all partnership assets have been converted to cash and all liabilities paid, the remaining cash should equal the sum of the balances of the partners’ capital accounts. Why?

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

A: Partnership firm is considered as a separate entry from its partnership. So even when interest on…

Q: Which one of the following is a content of a partnership deed? a. Customers' list b. Names and…

A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…

Q: debit balance on his capital

A: In partnership there are two Types of Method of maintaining capital Account FIXED CAPITAL ACCOUNT…

Q: nus is given to the old partners-

A: Partnership is a relationship between the two or more persons who are agreed to share profit of the…

Q: How does a partnership prepare financial reporting?

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Q: When can a partnership use the cash method of accounting?

A: A partnership in general cannot elect the cash method of accounting in the following circumstances:…

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: Interest on capital

A: Which one of the following is a gain to the partners ? Correct Answer :- D Interest on Capital

Q: summarizes the financial aspects of the partnership agreement and the equityrequirements of the…

A: Partnership Act: When the two or more people run the business for a long time for the future profits…

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: Under the bonus method, when a new partner is admitted to the partnership, the total capital of the…

A: Partnership characteristics includes: Sharing of profits and losses Mutual agency Unlimited…

Q: What is a summary of the changes in each partner's capital in a partnership that have occurred…

A: Financial statements: These imply to the written records that are maintained by the business related…

Q: Demonstrate the impact that the allocation of partnership income has on the partners’ individual…

A: Partnership: It is that form of organization which is owned and managed by two or more persons who…

Q: The objective of preparing Income Statement of partnership is: a. To show the interest on capital of…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: 1) The objective of preparation of income statement of partnership is: a. To show the ratio of…

A: Answer: The objective of preparation of income statement of partnership is to identify the revenue…

Q: What provisions in a partnership agreement can be used to establish an equitable allocation of…

A: Partnership: A partnership is an unincorporated form of business which is formed by an agreement,…

Q: Generally speaking, what events or activities would normally result in a partner’s capital account…

A: Partners’ Capital has a credit balance in normal. So, any credit will increase the partners’ capital…

Q: how would the increase in liabilities of other partners assumed would contribute to the partner's…

A: Partner interest in the partnership business is the percentage which a partner owns in the…

Q: Required Information [The following Information applies to the questions displayed below.] A = The…

A: In essence, the new partner pays for their share of the existing goodwill, which is reflected in…

Q: In admitting new partners, assets contributed by partners are recorded at their replacement value.…

A: Partnership is an agreement between two or more than two persons, in which they invest capital, run…

Q: The accounting treatment of capital invested in partnership business will be? a. Debited to cash…

A: Cash is increased. Partners capital is increased.

Q: List down the adjusted assets and liabilities of each partner to determine partner's capital.

A: The question is related to Partnership Accounting. The question is related to merger of two sole…