True or False Interests based on partners' capital are provided only during periods of positive results of operations, not during periods of losses.

Q: Questions: What are the rules in distributing profits and losses? Is it valid to exclude a partner…

A: Rules for distribution of profit and loss:: The partners shall be jointly and severally responsible…

Q: an investment in equity instrument may not be classified as a financial asset subsequently measured…

A: Solution: An investment in equity instrument may not be classified as a financial asset subsequently…

Q: What is the proper treatment for noncash asset received from a non-stockholder? Group of answer…

A: Accounting entry to be made for noncash asset received from a non-stockholder: Debit Noncash Assets…

Q: A deficiency in the capital of an insolvent partner is A. a loss to the other partners B. a gain…

A: Partnership refers to the formal agreement between two or more person who are agreed to carry out…

Q: Investments in equity securities for which the investor has insignificant influence over the…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: When there is a capital deficiecy, the effect is that a. the cash and other assets will also be…

A: Ans. Whenever there happens a case of capital deficiency, the assets are less as compared to the…

Q: partnership is less stable because it can easily disssolved. * What is the basis of capital sharing…

A: The partnership comes into existence when two or more persons comes together to do the business and…

Q: Recording a write-down from an original partner’s capital of book value to its implied fair market…

A: Write down of capital implies reduction in the capital funded by a partner to the firm in the…

Q: Interest on capital

A: Which one of the following is a gain to the partners ? Correct Answer :- D Interest on Capital

Q: Why an outstanding weakness of a limited partnership interest as an investment is its lack of…

A: Partnership: It can be defined as an arrangement in which all the parties provide their respective…

Q: Which of the following statements concerning the different types of hedging transactions is…

A: The Correct Answer is Option "C"  i.e. In hedging transaction which is undesignated, unrealized…

Q: If an associate incurs losses, the investor is required to________. Select one: a. recognise the…

A: An investment is known as Associate when more than 20% but less than 50% equity interest is…

Q: What is the basis of capital sharing if the partners do not have an agreement as to the amount of…

A: partnership association where two or more individual carry the business as co-owner for profit. it…

Q: A loan payable to a partner may be offset against his capital deficiency just as a loan receivable…

A: >During the process of liquidation, the assets of partnership are realized and the amount is paid…

Q: Which of the following can be used to offset a passive loss? a.Dividend income from stock held as an…

A: Solution- Passive losses are offset by only passive incomes not income from stock,bonds,dividend.…

Q: If the share of losses on realization of the sale of noncash assets exceed the balance in a…

A: Partnership means where two or more person comes together to do some common business activity and…

Q: When an investment ceases to be an associate, the fair value of the investment at the date when it…

A: Investment is the amount saved by the investor in order to earn regular income as well as get the…

Q: capital deficiency can be eliminated by the following except    A.Offsetting against a partner’s…

A: In partnership there many persons come together to do business and every one contribute to the…

Q: loses significant influence over the associate, the balance of the investment in the associate is…

A: When the company has significant influence over the associate, then equity method should be used for…

Q: Which of the following case where the losses are to be shared by the partners in their profit…

A: Ans. Loss on Dissolution of firm is shared on the basis of capital introduced by partners.…

Q: 4. Which of the following is not a component of other comprehensive income? a. Unrealized gain on…

A: ‘’Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Equity accounting for intercorporate investment relies on book value. But if the ownership is an…

A: Intercorporate investment is defined as an investment where a company makes an investment in another…

Q: How may the capital deficiency of an insolvent partner can be eliminated?

A: Partner is the one who is working and has invested money into the partnership or the one who has…

Q: When there is a capital deficiency, the effect is that The cash and other assets will also be…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: 3. Under the equity method, which of the following decreases the carrying amount of an investment in…

A: Equity method is one of the method which is usee for accounting for investment in some associate or…

Q: Losses are first met out of what on dissolution: O a. Out of private assets of partners O b. Out of…

A: Partnership means where two or more person comes together to do some common business activity and…

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.