Which one of the following is a gain to the partnership firm? a.Interest on drawings b.Interest on capital c.Interest on loan from bank d.Withdrawal of capital

Q: 6. In partnership liquidation the first cash distribution should be made for A) partner capital B)…

A: Answer:-  Partnership liquidation meaning:- Liquidation of partnership takes place when partners…

Q: Define each of the following terms: a. Sole proprietorship; partnership; corporation

A: Note: I am providing the solution to the first question only. Please repost the remaining questions…

Q: The investment of assets in a partnership by a partner increases both the partnership's

A: When a partner contributes assets to a partnership, these assets become a part of the partnership's…

Q: Interest on partners' capital is calculated on the? O a. Closing balance of capital only O b.…

A: Interest on capital is the income which is given to the partners to contribute the required capital…

Q: I. It is possible to invests assets into the partnership and be given zero capital credit. II. Total…

A: In the above question, we have to identify whether the mentioned statements are True or False.

Q: nus is given to the old partners-

A: Partnership is a relationship between the two or more persons who are agreed to share profit of the…

Q: The share of loss of partners will appear: a.On the credit side of the partners+IBk- capital account…

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

Q: When can partnership/S corporation income can be used. Choose best answer  A) Rental income and…

A: (1) S corporation is considered as a closely held corporation by the Internal Revenue Code (IRC) of…

Q: salary to partner

A: Profit distribution method that recognizes primarily the time and effort that a partner may devote…

Q: profit or loss

A: .To compensate the partners for the difference in capital contributions, they may include which of…

Q: An account in which a partner's interest in a firm is recorded; it is increased by owner investments…

A: Partnership is an agreement between two or more person for operating a business and share it's…

Q: On Dissolution of a partnership firm, the claims of the partners on their capital will be listed for…

A: Answer

Q: 15. Which statement(s) is incorrect? * -Income summary account is closed directly to capital…

A: Answer: Concept: Partnership firm is the association of two or more person. They agree to share…

Q: Which is/are the adjustments necessary while admitting a new partner? a. Both Transfer of…

A: Both, undistributed profit or loss and accumulated reserves are the result of work of existing…

Q: 48. In the absence of any contract to the contrary, profit on dissolution of a partnership firm is…

A: The partnership firm may be dissolved and the remaining assets after paying debt (liabiltiies) are…

Q: Which of the following statements about paid-in capital is correct?    a) Shows the capital amounts…

A: Paid-in capital refers to the total amount of capital contributed by the owners of the entity in the…

Q: limited partner as to the contribution of profits? Article 1856.

A: Partnership is the form of Business firm where two or more partners shares profits and losses in…

Q: The amount taken from the business by the partners for their personal use is called: a.Interest on…

A: The amount taken from the business by the partners for their personal use is called Drawings..Option…

Q: Which one of the following will be recorded under debit side of the partners' capital account? a.…

A: Solution-   Items that may appear on the debit side of the Capital Account when the capitals are…

Q: Interest on capital

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

Q: Which sentence is not true? Select one: a. In Partnership, the ownership divided into shares of…

A: Partnership: Minimum Two number of members required to form a business called Partnership.

Q: A partner is to a partnership like a(n) ______________ is to a corporation   a. Officer b.…

A: A partnership appears to be a non-formal firm run by more than one individual. The most frequent…

Q: What is the liability of partners in a partnership firm? Select one: A.Limited B. No Liability C.…

A: Partnership :— It means that partners are agreed to share profit or loss of a business carried by…

Q: . If the proceeds from the sale is less that the book value of the non-cash assets sold, this will…

A: Solution: When Proceed from sale of non cash assets is less than book value that means there is loss…

Q: Which one of the following will be added to the current liabilities in the balance sheet? a.…

A: Answer: Current liabilities are the liabilities which are expected to be cleared off within the…

Q: A limited partner will: a. Manage the firm b. Discount the bills c. Invest capital only in the firm…

A: A limited partnership exists when two or more partners go into business together, but the limited…

Q: 13 The undistributed Profit in the partnership firm is shown in _____________ of the old Balance…

A: The undistributed profits are also known as retained earnings. It is part of reserves and surplus…

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.