Liquidation of partnership refers to the shutting of the firm, i.e., putting end to the partnership business. This can be due to the death of any partner or on closure of the business or any other reason. Sometimes, the liquidation takes place for initializing new business entity with new partners. The value of goodwill after the contribution made by the new partner D for the acquisition of 30 % interest in capital and 25 % interest in profits of the partnership assuming the assets are understated by $ 25 , 000 .

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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.

Chapter 14, Problem 14.2.7P

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Concept Introduction:

Liquidation of partnership refers to the shutting of the firm, i.e., putting end to the partnership business. This can be due to the death of any partner or on closure of the business or any other reason. Sometimes, the liquidation takes place for initializing new business entity with new partners.

The value of goodwill after the contribution made by the new partner D for the acquisition of 30% interest in capital and 25% interest in profits of the partnership assuming the assets are understated by $25,000 .

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Kendrick Industries provided the following financial data: ⚫ Net Income = $30,120 Assets at the Beginning of the Year = $220,000 Assets at the End of the Year = $270,000 Find the return on assets (ROA) in percentage.

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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.

Chapter 14, Problem 14.2.7P

To determine

Concept Introduction:

Liquidation of partnership refers to the shutting of the firm, i.e., putting end to the partnership business. This can be due to the death of any partner or on closure of the business or any other reason. Sometimes, the liquidation takes place for initializing new business entity with new partners.

The value of goodwill after the contribution made by the new partner D for the acquisition of 30% interest in capital and 25% interest in profits of the partnership assuming the assets are understated by $25,000 .

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Answer 3

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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.

Chapter 14, Problem 14.2.7P

To determine

Concept Introduction:

Liquidation of partnership refers to the shutting of the firm, i.e., putting end to the partnership business. This can be due to the death of any partner or on closure of the business or any other reason. Sometimes, the liquidation takes place for initializing new business entity with new partners.

The value of goodwill after the contribution made by the new partner D for the acquisition of 30% interest in capital and 25% interest in profits of the partnership assuming the assets are understated by $25,000 .

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 4

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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.

Chapter 14, Problem 14.2.7P

To determine