Carney, Pierce, Menton, and Hoehn are partners who share profits and losses on a 4:3:2:1 basis, respectively. They are beginning to liquidate the business. At the start of this process, capital balances are: Carney, capital. . . . . . . . . .. . . $60,000Pierce, capital. . . . . . . . . . . . . . 27,000Menton, capital. . . . . . . . . . . . 43,000Hoehn, capital. . . . . . . . . . . . . 20,000 Which of the following statements is true? Choose the correct.a. The first available $2,000 will go to Hoehn.b. Carney will be the last partner to receive any available cash.c. The first available $3,000 will go to Menton.d. Carney will collect a portion of any available cash before Hoehn receives money.
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.
Carney, Pierce, Menton, and Hoehn are partners who share
Carney, capital. . . . . . . . . .. . . $60,000
Pierce, capital. . . . . . . . . . . . . . 27,000
Menton, capital. . . . . . . . . . . . 43,000
Hoehn, capital. . . . . . . . . . . . . 20,000
Which of the following statements is true? Choose the correct.
a. The first available $2,000 will go to Hoehn.
b. Carney will be the last partner to receive any available cash.
c. The first available $3,000 will go to Menton.
d. Carney will collect a portion of any available cash before Hoehn receives money.
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