The withdrawal of a partner who receives assets with a value exceeding his capital balance results in A. a decrease in purchase liabilities B. an increase in the capital balances of the remaining partners C. an increase in partnership assets D. a decrease in the capital balances of the remaining partners
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.
The withdrawal of a partner who receives assets with a value exceeding his capital balance results in
A. a decrease in purchase liabilities
B. an increase in the capital balances of the remaining partners
C. an increase in
D. a decrease in the capital balances of the remaining partners
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