Partnership OperationsPersonal withdrawal by a partner in anticipation for profits are not viewed aspermanent in character. This requires a-Instruction: Encircle the letter of the corresponding correct answer.Multiple Choice:11a) debit to drawing accountb) credit to capital accountc) debit to capital accountd) credit to drawing account1 In preparing closing entries of the partnership,-a) all nominal accounts are reduced to zero balanceb) Income & Expense Summary is closed to Capital Accountc) Income & Expense Summary is closed to Drawing Accountd) Drawing Account is left open3) Failure to stipulate on how profit and loss be divided among partners. It should be-a) in proportion to what has been contributedb) settled in the court of lawc) equally dividedd) by other legal means agreeable among partners4) In case the partnership makes profit, how will an industrial partner be given a share?a) what is just equitableb) equallyc) arbitrarilyd) depending on the court's decision5) A partner who contributes money or property as well as his work or industry to thepartnership is a/an-a) industrial partnerb) capitalist-industrial partnerc) capitalist partnerd) dormant partner

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onding correct answer. permanent in character. This requires a- Personal withdrawal by a partner in anticipation for profits are not viewed as 1) a) debit to drawing account

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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Concept explainers

Cash Book

So, before coming to the topic of cash books, I will let you briefly explain about the cash so that you all can be familiar with the word cash. Cash comes under the category of the current asset which is used as a medium of exchange for all the financial transactions in the firm. Cash is something that is universally accepted as a mode of payment. So, now comes to the topic i.e., cash book.

Question

Partnership Operations
Personal withdrawal by a partner in anticipation for profits are not viewed as
permanent in character. This requires a-
Instruction: Encircle the letter of the corresponding correct answer.
Multiple Choice:
11
a) debit to drawing account
b) credit to capital account
c) debit to capital account
d) credit to drawing account
1 In preparing closing entries of the partnership,-
a) all nominal accounts are reduced to zero balance
b) Income & Expense Summary is closed to Capital Account
c) Income & Expense Summary is closed to Drawing Account
d) Drawing Account is left open
3) Failure to stipulate on how profit and loss be divided among partners. It should be-
a) in proportion to what has been contributed
b) settled in the court of law
c) equally divided
d) by other legal means agreeable among partners
4) In case the partnership makes profit, how will an industrial partner be given a share?
a) what is just equitable
b) equally
c) arbitrarily
d) depending on the court's decision
5) A partner who contributes money or property as well as his work or industry to the
partnership is a/an-
a) industrial partner
b) capitalist-industrial partner
c) capitalist partner
d) dormant partner

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