When a partner withdraws from a partnership and the value of the assets paid to the partner by the partnership is greater than the balance in his capital account, the partnership is, in effect, paying the withdrawing partner a bonus. TRUE OR FALSE?
When a partner withdraws from a partnership and the value of the assets paid to the partner by the partnership is greater than the balance in his capital account, the partnership is, in effect, paying the withdrawing partner a bonus. TRUE OR FALSE?
When a partner withdraws from a partnership and the value of the assets paid to the partner by the partnership is greater than the balance in his capital account, the partnership is, in effect, paying the withdrawing partner a bonus. TRUE OR FALSE?
When a partner withdraws from a partnership and the value of the assets paid to the partner by the partnership is greater than the balance in his capital account, the partnership is, in effect, paying the withdrawing partner a bonus. TRUE OR FALSE?
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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