From a partner's viewpoint, which of the following will have an unfavourable effecton the closing balance of the current account of a partner?Opening debit balance in the current accountInterest on drawingsSalariesiv)DrawingsA.D, 0), 1) and iv)OB.1), ) and iv)OC.) and iv) onlyD. 1), 1) and iv)mod/aua/sunumary phplattempte 5116948emido

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Answered: From a partner's viewpoint, which of…

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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True or False 1. The equity of a partner in the net assets of the partnership is not the same as the partner's share in profits or losses. 2. It is possible for a partner's capital account to increase as a result of the allocation of a loss. 3. Salary and interest allowances are reported in the statement of financial performance as salaries and interest expenses. 4. In certain cases when distribution of profits or losses involves salary and interest allowances, some partners may receive an increase in equity and others may suffer a decrease. 5. Using average capital balances as a basis for profit distribution is preferable because it reflects the capital actually available for use by the partnership during the year. Temporary withdrawals should be considered even when they are within allowable limits. 6. In the absence of stipulation, the share of each partner in profits or losses shall be in the same proportion to what he may have contributed, but the industrial partner may not be…
2. The account used to represent cash received by the partnership from a partner as a loan a. Loans payable to partner b. Loans receivable to partner c. Loans receivable from partner d. Loans payable to partner
Assess the truth of this statement: The transaction of a partnership that is recording cash invested by a partner should be recorded as a debit to cash and a credit to the individual partner's drawing account. O This statement is true. O This statement is false. O There is not enough information to determine whether or not this statement is true. O This statement is not applicable to accounting concepts.
S1: When two or more proprietors form a partnership, one may maintain his own books as the partnership books. Accordingly, only the other partners need to adjust and close their accounts. S2: When one of the partners retain his books as the books of the partnership, still, he should also close his accounts and record his investments both statements are true both are false only S1 is true only S2 is true.
NOTE AI ANSWER EXPERT SOLUTION
Assess the truth of this statement: The normal balance of a partner's capital account is a credit balance. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.
Identify the correct statement/s from the following:I. In absence of partnership agreement, no interest on capital is allowed II. In absence of partnership agreement, 6% interest on partner's loan is allowed O a. Statement II only correct O b. Statement I only correct O c. Both Statements are correct O d. Both Statements are wrong
Which of the following is an expense of a LLP? إختر أحد الخيارات: a. Interest on loans from partners to the partnership. b. Interest on partners’ capital account balances. c. Interest on loans to partners from the partnership. d. interest on notes receivable
Please help with this Accounting type Question: If immediate payment is not made to a partner taking leave from the firm then the due amount is transferred to A. Current account B Loan account C. Reserve account D. None of the above
Plz solve its timed!!
Assess the truth of this statement: One of the rules of debits and credits and account balances for a partnership is that assets increase as debits. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.
Which of the following accounts could be found in the general ledger of a partnership? Income tax expense interest expense on partner loans A NO NO B YES NO C YSE YES D NO YES Select one: a. NO , NO b. YES , NO c. NO . YES d. YES , YES

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From a partner's viewpoint, which of the following will have an unfavourable effect on the closing balance of the current account of a partner? Opening debit balance in the current account Interest on drawings Salaries v) Drawings