If there is a provision for division of profits but not losses in the partnership agreement, it is concluded that: O Losses should not be divided to the capital accounts, but matched against future earnings Losses should be divided equally O Losses should be divided using the same approach as division of profits O Losses should be allocated according to the ratio of capital account balances

If there is a provision for division of profits but not losses in the partnership agreement, it is concluded that: O Losses should not be divided to the capital accounts, but matched against future earnings Losses should be divided equally O Losses should be divided using the same approach as division of profits O Losses should be allocated according to the ratio of capital account balances

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Question 16 This principle requires measurement of transaction on the basis of cost price or equal to cash price A. Full disclosure B. Exchange price principle C. Matching principle D. Revenue recognition principle Question 19 The rights of the partner over the net assets of the business is called A. Parter's drawing B. Partners equity C. Partners capital D. None of the above
Accounting type Question: As per the decision in the Garner vs Murray case, when the partner's capital accounts are fixed, any loss arising due to the capital deficiency in the insolvent partner's capital account is to be borne by solvent partners in the ratio of ..... A. profit sharing ratio B. last agreed capital ratio C. sacrificing ratio D. gaining ratio
True or False: Property dividends affect both the investment in associate account and the investment income or share in the profit of the associate.
plz solve!!
Capital Contribution Ratio in Partnership Operations
The balancing amount of a valuation account is closed off to the drawings account of each existing partner by apportioning the balancing amount to the partners according to their profit-sharing ratio. True False
Partnership is the economic relationship between two or more persons: a. Who will not pay goodwill b. Who have agreed to not to share profit c. Who will not contribute capital d. Who have agreed to share profit