Nurul and Fiza are partners of a day care centre called Happy Kids, which they formed on 1 January 2017. Nurul contributed RM80,000 cash and equipment worth RM20,000 to the partnership. Fiza contributed RM30,000 cash and a building worth RM150,000. For financial year ended 31 December 2017, the partnership had a net income of RM150,000.

Nurul and Fiza are partners of a day care centre called Happy Kids, which they formed on 1 January 2017. Nurul contributed RM80,000 cash and equipment worth RM20,000 to the partnership. Fiza contributed RM30,000 cash and a building worth RM150,000. For financial year ended 31 December 2017, the partnership had a net income of RM150,000.

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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Write the word or group of words that identify each of the following statements. 4. Any partner can act in behalf of the partnership as long as these acts are within the scope of normal partnership activity. 5. A partnership which failed to comply with one or more of the legal requirements for its establishment. 6. An entry prepared when industry is contributed into the partnership.
Write the word or group of words that identify each of the following statements. 1 A partnership organized for the purpose of rendering service. 2. A contract whereby two or more persons bind themselves to contribute money, property, or industry to a common fund with the intention of dividing profits among themselves. 3. The basis for recording a partner's contribution in the form of noncash assets 4. One who is both a silent and a scret partner.
The following are rights of a partner in a partnership, except one: Right to compensation Right to information Right to return of capital Right to agency
List the instances when a partnership is terminated.
loan to partner , the debit side will be in the partnership Select one: a. cash b. No entry c. partner loan d. partner capital
Which of the following best describes the articles of partnership agreement? Multiple Choice The articles of partnership are a legal covenant that may be expressed orally or in writing, and forms the central governance for a partnership's operations. The articles of partnership are an agreement that limits partners' liability to partnership assets. The articles of partnership are a legal covenant and must be expressed in writing to be valid. The purpose of the partnership and partners' rights and responsibilities are required elements of the articles of partnership.
One of the final steps in terminating a partnership is the distribution of remaining assets to the partners after all obligations have been met. What is the basis for distributing any remaining assets/cash among the partners? How would loans from partners affect the distribution of partnership assets?
Which of the following is an election or calculation made by the partner rather than the partnership? Calculation of a section 199A(qualified business income) deduction amount. Claiming a section 179 deduction related to property acquired by the partnership. Tax treatment (e.g., credit, amortization) of research and experimental costs. The partnership's accounting method (e.g.. cash, accrual).
Required Information [The following Information applies to the questions displayed below.] A = The amount of tangible assets contributed by the new partner into the partnership B=The amount of capital credited to the new partner C= Total capital of the partnership before the admission of a new partner D= Total capital of the partnership after the admission of a new partner Refer to the above information. Which statement below is correct if goodwill of the old partners is recognized upon the contribution of assets into the partnership by a new partner? Multiple Choice B=A and DA and D
For partnerships, the qualified business income (QBI) items reported on Schedule K-1 should include the Section 199A business income, the W-2 wages of any qualified trade or business, and: Guaranteed payments made to the partners in lieu of salary. Recapture of investment credit. The unadjusted basis of qualified property. The adjusted basis of qualified property.
Each partner's initial noncash investment in the partnership should be recorded at the a. carrying amount of the assets at the date of their transfer into the partnership. fair value of the assets at the date of their transfer into the business. c. original cost of the assets at the time they were purchased by the contributing partner. d. fair value of the assets at the date the partnership begins operations.
List down the adjusted assets and liabilities of each partner to determine partner's capital.