When a partnership dissolves, the first step in the dissolution process is to ________.A. allocate the gain or loss on sale based on income sharing ratioB. pay off liabilitiesC. sell noncash assetsD. divide the remaining cash among the 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.
When a
A. allocate the gain or loss on sale based on income sharing ratio
B. pay off liabilities
C. sell noncash assets
D. divide the remaining cash among the partners
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