In which order are partnership assetsdistributed to the partners?O Capital balances, loans, profitsO Loans, profits, capital balancesO Profits, capital balances, loansLoans, capital balances, profits In the liquidation of a partnership, a loan froma partnerO Will be closed to the partner's drawing accountO Will be written offO Will be paid off at the same time as payment ofother liabilities of the partnershipO Will be paid off before distribution of cash topartners for their capital investments

ln case of partnership there is agreement between the partners. they bring capital for operations…

In which order are partnership assets distributed to the partners? Capital balances, loans, profits O Loans, profits, capital balances O Profits, capital balances, loans O Loans, capital balances, profits

In which order are partnership assets distributed to the partners? Capital balances, loans, profits O Loans, profits, capital balances O Profits, capital balances, loans O Loans, capital balances, profits

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3PA: When a partnership is liquidated, any gains or losses realized by the sale of noncash assets are...

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The accounting treatment of capital invested in partnership business will be? a. Debited to cash account b. Credited to cash account c. Debited to profit and loss appropriation account d. Debited to partners' capital account
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Allocation of partnership income among the partners appears on what financial statement?
is it true or false? Explain Unless stated otherwise,in the partnership contract,profits and losses are shared among the partners in the ratio of their capital equity balances.
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50 In which order are partnership assets distributed to the partners? Group of answer choices Profits, capital balances, loans Capital balances, loans, profits Loans, profits, capital balances Loans, capital balances, profits
1. What entry is necessary to reflect interest payable on partner's drawings? a. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Current (Cr.) c. Profit and Loss Appropriation (Dr.), Cash (Cr.) d. Profit and Loss Appropriation (Dr.), Partner's Capital (Cr.) 2. What entry is necessary to reflect interest earned on capital account balances? a. Partner's Drawings (Dr.), Partner's Current (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Drawings (Cr.) c. Partner's Drawings (Dr.), Interest Payable (Cr.) d. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) 3. A partner's personal gas receipts have been treated as part of the partnership's service vehicle expenses. Which of the following entries is necessary to correct the error? a. Drawings (Dr.), Service vehicle expense (Cr.) b. Service vehicle expense (Dr.), Drawings (Cr.) c. Service vehicle expense (Dr.), Capital…
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In a partnership liquidation, a gain from the sale of assets is allocated to the: a. Payment of partnership liabilities b. Partner with the lowest capital balances first c. Partners based on their capital balances d. Partners based on their profit and loss ratio
In partnership liquidation the first cash distribution to the partner should be made in accordance with the Select one: a. Ratio of the capital contribution by partners b. Balances of partners' capital accounts c. Partners profit &loss ratios d. Safe payment schedule