Mr. Ahmed, the general partner of a big furniture store in Muscat is going to contribute a bigger share of money to settle the partnership's liabilities to its creditors. Why Ahmed is going to do so? O General partners have a distinct legal personality O General partners have unlimited liability O None of the choices are correct O General partners will contribute more because they have more money

Mr. Ahmed, the general partner of a big furniture store in Muscat is going to contribute a bigger share of money to settle the partnership's liabilities to its creditors. Why Ahmed is going to do so? O General partners have a distinct legal personality O General partners have unlimited liability O None of the choices are correct O General partners will contribute more because they have more money

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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Question Bobby Donal and Bill Spader are discussing the liquidation of a partnership. Bobby maintains that all cash should be distributed to partners on the basis of their income ratios. Is he correct? Explain.
Note:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up vote for sure.
Problem #1 (Adapted) Jack and Jill are partners who share profit or loss in the ratio of 3:2. They have capital balance of P200,000 and P300,000, respectively. Jill needed money and made known to Jack her intention to withdraw part of her capital in the partnership. However, much of the partnership funds are tied-up in accounts receivables and inventories and Jack suggested that she just sell the interest of her to Hill, a common friend. Hill agrees to purchase ½ of Jill's interest for P170,000. Required: A. Prepare journal entry in the books of partnership to record the admission of Hill. B. Determine the composition and total partnership capital after admission of Hill. c. Does it necessarily follow that Hill will have 20% share in the profit or loss (1/2 of the share of Jill)?
12 Roscoe is insolvent and still owes $60,000 to his personal creditors. The personal creditors now attempt to collect from the partnership, where Roscoe has been a partner. Roscoe has a capital account balance of $15,000. His partner Jordan has a capital account balance of $25,000. The partnership has cash of $200,000 and liabilities of $160,000. How much does Roscoe’s personal creditors have a right to recover from the partnership ?
Solve the problem correctly.
Ma1. response to the classmate, Amanda Cain, Partnerships are considered flow-through entities meaning, each partner of the business is responsible to pay taxes on their share of the business’s profit/losses. The amount paid on profit/losses is determined by each partner’s investment share of the business. If the business suffers a loss the partners would each take ownership of the amount on their personal income tax rather thank through the partnership as it is not a taxable entity. The same goes for profits, if the business earns a profit each partner must pay taxes on their share. Basic tax filing requirements of a partnership is 1.) file an information return using Form 1065 annually with the IRS and 2.) each of the partners will be required to file an individual income tax return using Form 1040 in addition to Form 1065. The Form 1065 is used to disclose the business’s income/loss and provide a breakdown of how much each of the partners have earned from their share of profit…
Jeff Zengel is a financial consultant to Rae properties Inc. a real estate syndicate. Rae Properties Inc. finances and develops commercial real estate (office buildings) The completed projects are then sold as limited partnership interests to individual investors. The syndicate makes a profit on the sale of these partnership interests. Jeff provides financial information for the Offering prospectus which is a document that provides the financial and legal details of the limited partnership offerings. In one of the project the bank has financed The construction of a commercial office building at a rate of 8% for the first four years, after which time the rate jumps to 12% for the remaining 21 years of the mortgage. The interest costs are one of the major ongoing costs of a real state project. Jeff has reported prominently in the prospectus that the break even occupancy for the first four years is 60% this is the amount of office space that must be leased To cover the Interest and…
Hi! Please choose the correct LETTER of answer:
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