PB3. LO 15.5 Match each of the following descriptions with the appropriate term related to partnership accounting. A. Each and every partner can enter into contracts on behalf of the partnership i. liquidation B. The business ceases operations. ii. capital deficiency C. How partners share in income and loss ii. admission of a new partner D. Adding a new partner by contributing cash iv. mutual agency E. A partner account with a debit balance v. income sharing ratio

PB3. LO 15.5 Match each of the following descriptions with the appropriate term related to partnership accounting. A. Each and every partner can enter into contracts on behalf of the partnership i. liquidation B. The business ceases operations. ii. capital deficiency C. How partners share in income and loss ii. admission of a new partner D. Adding a new partner by contributing cash iv. mutual agency E. A partner account with a debit balance v. income sharing ratio

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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In accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors' claims have been satisfied, but before the final cash distribution should be according toa. the final balances in partner capital accounts.b. the partners' relative share of the gain or loss on liquidation.c. the partners' relative profit and loss sharing ratio.d. safe payment computations.
Assess the truth of this statement: For a partnership entity, partnership equity is composed of one capital account for each partner. Group of answer choices This statement is true. This statement is false. There is not enough information to determine whether or not this statement is true. This statement is not applicable to accounting concepts.
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.
S1: Forming a partnership requires two or more people agreeing partners Contributing all their personal properties. S2: Oral agreement partners are not allowed. * A. Statement 2 is true. B. Statement 1 is true. C. Both statements are false. D. Both statements are true. S1: A joint arrangement that is structured without a separate vehicle should be accounted as Joint Venture. S2: A joint arrangement that is structured without a separate vehicle should be accounted as Joint Operation? A. S2 True; S1 False B. Both statements are false C. s1 True; S2 False D. Both statements are true The interest of the retiring or withdrawing partner is usually measured by his capital balance before his retirement or withdrawal adjusted by the following adjustments except? A. profit or loss from the operation from the last closing date of the date of his retirement or withdrawal B. profit or loss after the date of the partner's withdrawal or retirement C. errors in net income in prior years D.…
The partner's drawing account is used: O To reduce the partner's capital account balances at the end of an accounting period O To record the partner's share of net income or loss for an accounting period O In the same manner as the partner's loan accounts O To record the partner's salaries.
1. Statement I: One who lends money/credit to the owner of a business establishment in consideration of which he will share in the profits in repayment of such credit, is presumed to be a partner. Statement II: If an employee received a share in the profits of the partnership in consideration of rendition of services, does not make the employee a partner. Both statements are True Statement I is True; Statement II is False Statement I is False; Statement II is True Both statements are False 2. A, B, and C are partners contributing the following amount: A=P50,000 B=25,000 and C=25,000. The partners did not agree on the profit and loss sharing. If there is a loss of P90,000, how much is their respective shares? A= 45,000, B=22,500 C=22,500 A= 50,000, B=20,000 C=20,000 A= 30,000, B=30,000 C=30,000 There will be no distribution of loss because it is not stipulated in the agreement. 3. Statement I: The mere sharing of gross returns establish the fact that it is a partnership, no…
In partnership liquidation the first cash distribution should be made for Select one: a. loan to bank b. partner capital c. loan to partner d. Liquidation expenses 000
loan to partner , the debit side will be in the partnership Select one: a. cash b. No entry c. partner loan d. partner capital
LIf the partnership agreement does not specify how profits or losses are to be distributed, they should be allocated based on relative capital account balances. IL. The industrial partner is not liable for losses because he cannot withdraw the work or labor already done by him. I. Partnership profits and losses are divided among partners according to their sharing agreement. It no sharing agreement exists, profits and losses are divided equally. IV. It is possible to allocate profit or loss to partners based solely on average capital balances, Only one statement is false O Two statements are true All of the statements are true All statements are false 1. When salary and interest allocations exceed profit, a loss has occurred. IL. The salary, interest and stated ration method of allocation cannot be applied when a loss has occurred. I. It is possible to allocate profit or loss ratio to partners based solely on salaries IV. In the absence of specific agreement, the law requires the…
Which of the following apply to a partnership that consists solely of general partners? I. Double taxation of partnership profits. II. Limited partnership life. III. Active involvement in the firm by all the partners. IV. Unlimited personal liability for all partnership debts. Group of answer choices II and III only. II only. II, III, and IV only. I and II only. I, II, and IV only.
QUESTION NO. 1: Having the clear understanding of company’s accounts and partnership accounts you are required to answer the following questions. What is partnership accounts give example and what are the necessary components of partnership accounts that a company should consider when preparing partnership accounts and why? How can you differentiate the company’s accounts from partnership accounts and on what grounds?explain with the help of example. (important instructions: content should be original with 0% plagirisim, answer should be in details with proper explanation and examples)
a) How is a sec 707(a) payment to a partners for service treated by the partners and the partnership? when will it be recongnise by a cash basis partner? when will it be deducted by a partnership? b) How is a guaranteed payment for services treated by the partner and the partnership? What is it recongnized or deducted?