In the liquidation of a partnership, thegains and losses from assets sold areO divided equally among the partners.divided among the partners in the statedincome ratio.divided among the partners in proportion totheir capital equity interests.O ignored.

Solution: In the liquidation of partnership, the gain and losses from assets sold "Divided amount…

Answered: In the liquidation of a partnership,…

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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Similar questions

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.
Which of the following is added to the Partner's capital account in the Statement of Changes in Partner's Equity? Temporary withdrawal of investment by the Partner Share in the net income of the Partnership Share in the net loss of the Partnership Partners' drawing during the year
Net income for a partnership has to be allocated based on stated ratios. Question 2 options: True False
Which one of the following statement is not correct on preparation of partnership final accounts? a. Adjustments will be recorded have dual effects in the income statement and statement of financial position b. Preparation of income statement is same as sole proprietorship business c. Net profit from income statement will be transferred to partners' capital account d. Accounting principles are same as sole proprietorship business
Tax Drill - Effect of Partnership Operations on Basis Indicate whether the following items "Increase" or "Decrease" a partner's basis in the partnership. a. A partner's proportionate share of nondeductible expenses. b. A partner's proportionate share of any increase in partnership liabilities. c. A partner's proportionate share of partnership income. d. A partner's proportionate share of any reduction in partnership liabilities.
A partnership agreement may NOT include O the method of allocating profits and losses the purpose of the business each partner's duties O the name of the heirs of each of the partners who will inherit the share in the partnership business
How do loans from partners affect the distribution of assets in a partnership liquidation?
How does a newly formed partnership handle the contribution of previously depreciated assets?
In the liquidating process, any uncollectible deficiency becomes a loss to the partnership and is divided among the remaining partners' capital balances based on their income-sharing ratio. True /false
Accounting In the liquidation of a partnership, a loan from a partner a. Will be paid off at the same time as payment of other liabilities of the partnership b. Will be paid off before distribution of cash to partners for their capital investments c. Will be closed to the partner's drawing account d. Will be written off
In the liquidating process, any uncollected cash becomes a loss to the partnership and is divided among the remaining partners' capital balances based on their income-sharing ratio. Group of answer choices True False
Under the goodwill method, a. declines in asset values prior to new partner admission are recorded, but not asset appreciation. b. the total capital of the new partnership must approximate the fair value of the entity. c. a new partner’s capital balance may be less than his or her contribution. d. All of the above.

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In the liquidation of a partnership, the gains and losses from assets sold are O divided equally among the partners. divided among the partners in the stated income ratio. divided among the partners in proportion to their capital equity interests. O ignored.