S1: Loans receivable of the partnership from the partners are deducted from the capital balance of a partner to compute his total interest. S2: In elimination of capital deficiency, if the deficient partner has an excess personal assets over personal liabilities, the deficient partner directly invests additional cash to eliminate his capital deficiency a. Both true b. Both False c. S1 is true, S2 is false d. S1 is false, S2 is true
S1: Loans receivable of the partnership from the partners are deducted from the capital balance of a partner to compute his total interest. S2: In elimination of capital deficiency, if the deficient partner has an excess personal assets over personal liabilities, the deficient partner directly invests additional cash to eliminate his capital deficiency a. Both true b. Both False c. S1 is true, S2 is false d. S1 is false, S2 is true
S1: Loans receivable of the partnership from the partners are deducted from the capital balance of a partner to compute his total interest. S2: In elimination of capital deficiency, if the deficient partner has an excess personal assets over personal liabilities, the deficient partner directly invests additional cash to eliminate his capital deficiency a. Both true b. Both False c. S1 is true, S2 is false d. S1 is false, S2 is true
S1: Loans receivable of the partnership from the partners are deducted from the capital balance of a partner to compute his total interest. S2: In elimination of capital deficiency, if the deficient partner has an excess personal assets over personal liabilities, the deficient partner directly invests additional cash to eliminate his capital deficiency
a. Both true b. Both False c. S1 is true, S2 is false d. S1 is false, S2 is true
Definition Definition Arrangement between two or more people whereby they agree to manage business operations and share its profits and losses in an agreed ratio. The agreement 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, and drawings of a partner.
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