In liquidation of LLP, for allocation of realization losses to partners, the journal entry includes: a. Debit each partner’s capital with his/her share in gains based final capital balances. b. Debit each partner’s capital with his/her share in gains based on income sharing ratios. c. Credit each partner’s capital with his/her share in gains based final capital balances. d. Credit each partner’s capital with his/her share in gains based on income sharing ratios.
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.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
