G is a capitalist partner. He was able to contribute P500,000.00 for the benefit of the partnership. Fortunately, the partnership became so successful. G is now demanding the return of his P500,000.00 because there is sufficient capital for the partnership. What will you tell G as the accountant of the partnership? G has no right to the return of the capital because dissolution is not yet effected. G has no right to return his advances because dissolution is not yet effected. G has the right to the return of the capital because he was able to comply with his duties as a partner. G has the right to return his advances because a sufficient capital is already available.
G is a capitalist partner. He was able to contribute P500,000.00 for the benefit of the partnership. Fortunately, the partnership became so successful. G is now demanding the return of his P500,000.00 because there is sufficient capital for the partnership. What will you tell G as the accountant of the partnership? G has no right to the return of the capital because dissolution is not yet effected. G has no right to return his advances because dissolution is not yet effected. G has the right to the return of the capital because he was able to comply with his duties as a partner. G has the right to return his advances because a sufficient capital is already available.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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G is a capitalist partner. He was able to contribute P500,000.00 for the benefit of the partnership. Fortunately, the partnership became so successful. G is now demanding the return of his P500,000.00 because there is sufficient capital for the partnership. What will you tell G as the accountant of the partnership?
G has no right to the return of the capital because dissolution is not yet effected.
G has no right to return his advances because dissolution is not yet effected.
G has the right to the return of the capital because he was able to comply with his duties as a partner.
G has the right to return his advances because a sufficient capital is already available.
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