Questions: What are the rules in distributing profits and losses? Is it valid to exclude a partner in the distribution of losses? Why? Why not?

Q: 1. Journalize the entries to record the following selected transactions of Oliver Co.: (a) Purchased…

A: A bond is generally issued to acquire the required funds to meet the requirements. The bond issuer…

Q: When is the fair value method used for recording interest in a separate company?

A: The methods for recording interest in a separate company are as follows: Fair value method Amortized…

Q: Liabilities Liquid assets Monthly credit payments Monthly savings $ 8, 000 $ 5,000 $4668 $ 150 Net…

A: Formula: Debt ratio = Liabilities / Net worth

Q: ) Which of the following statement is not correct about a sole trader business? option: A. sole…

A: A sole trader refers to a person who is the only owner of the business or do not have any partner…

Q: An associated person of a broker-dealer may only share directly or indirectly in the profit or…

A: An associated person of a broker- dealer may only share directly or indirectly in the profit or loss…

Q: Preferred shareholders sometimes have the right of conversion. What does this means?

A: Preferred shareholders: Preferred shareholders are holding the preference shares in the company.…

Q: LO.3 What limits exist on the deductibility of executive compensation? Do the limits apply to all…

A: Deductibility of executive compensation Publicly listed firms are generally not allowed to deduct…

Q: The dividend is not a legal liability until the board of directors has declared it.  true or false.…

A: Equity capital are the funds invested by the owners in the company. The equity holders of the owners…

Q: Which of the following is NOT a characteristic of an ordinary share? a) The dividends are at the…

A: Ordinary share is a common stock which gives ownership of the company.

Q: Which of the following statements is true when assessing whether potential voting rights contribute…

A: 1) When assessing whether or not possible voting rights assist control? All facts and situations…

Q: What role does the buy–sell agreement occupy in a business successionplan?

A: The role of the buy–sell agreement occupy in a business successionplan is given below as,

Q: A share-based payment transaction with cash alternative whereby the right of choice of settlement is…

A: In accordance with IFRS 2 "Share-based Payment", an entity is required  to recognize share-based…

Q: What is a noncontrolling interest? Select one: A. A component of debt representing amounts owed to a…

A: When a company holds less than 50% stake in another company then that part of holding is known as…

Partnership Accounting

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc. 

Partner Admission and Withdrawal

A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.