Skip to main content

Business Accounting EBK ADVANCED FINANCIAL ACCOUNTING

Admission of partner: changes in the membership of partnership occurs with the addition of new partners or disassociation of present partners. New partners often bring additional capital or needed expertise. A new partner can only be admitted with unanimous approval of all the existing partners, further public announcements are made about admission of partner. Section 306 of Uniform partnership act UPA 1997 states that a new partners are not liable for any liability incurred before new partners admitted. Thus, a new partner can be charged for partnership liabilities of existing partnership to the extent of capital contribution at the time of admission. To choose: the correct answer to determine contribution of new partner.

Admission of partner: changes in the membership of partnership occurs with the addition of new partners or disassociation of present partners. New partners often bring additional capital or needed expertise. A new partner can only be admitted with unanimous approval of all the existing partners, further public announcements are made about admission of partner. Section 306 of Uniform partnership act UPA 1997 states that a new partners are not liable for any liability incurred before new partners admitted. Thus, a new partner can be charged for partnership liabilities of existing partnership to the extent of capital contribution at the time of admission. To choose: the correct answer to determine contribution of new partner.

Solution Summary: The author explains that a new partner can only be admitted with unanimous approval of all the existing partners.

EBK ADVANCED FINANCIAL ACCOUNTING

EBK ADVANCED FINANCIAL ACCOUNTING

11th Edition

ISBN: 8220102796096

Author: Christensen

Publisher: YUZU

See similar textbooks

Question

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 15, Problem 15.8.1E

To determine

Admission of partner:changes in the membership of partnership occurs with the addition of new partners or disassociation of present partners. New partners often bring additional capital or needed expertise. A new partner can only be admitted with unanimous approval of all the existing partners, further public announcements are made about admission of partner. Section 306 of Uniform partnership act UPA 1997 states that a new partners are not liable for any liability incurred before new partners admitted. Thus, a new partner can be charged for partnership liabilities of existing partnership to the extent of capital contribution at the time of admission.

To choose:the correct answer to determine contribution of new partner.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

Blurred answer

Chapter 15, Problem 15.7E

Chapter 15, Problem 15.8.2E

Students have asked these similar questions

General accounting

Please provide answer this financial accounting question

Titan Manufacturing has total maintenance department expenses of $35,600. The maintenance costs are allocated based on square footage, where the Molding department occupies 5,500 square feet, and the Finishing department occupies 2,500 square feet. Compute the amount of maintenance department expense allocated to Molding.

Chapter 15 Solutions

EBK ADVANCED FINANCIAL ACCOUNTING

Ch. 15 - Prob. 15.1Q Ch. 15 - Prob. 15.2Q Ch. 15 - Prob. 15.3Q Ch. 15 - Prob. 15.4Q Ch. 15 - Under what circumstances would a partner’s capital...Ch. 15 - Prob. 15.6Q Ch. 15 - Prob. 15.7Q Ch. 15 - Prob. 15.8Q Ch. 15 - Prob. 15.9Q Ch. 15 - Prob. 15.10Q

Ch. 15 - Prob. 15.11Q Ch. 15 - Prob. 15.12Q Ch. 15 - Prob. 15.13Q Ch. 15 - Prob. 15.14Q Ch. 15 - Prob. 15.15AQ Ch. 15 - Prob. 15.16BQ Ch. 15 - Prob. 15.1C Ch. 15 - Prob. 15.2C Ch. 15 - Prob. 15.3C Ch. 15 - Prob. 15.1.1E Ch. 15 - Prob. 15.1.2E Ch. 15 - Prob. 15.1.3E Ch. 15 - Prob. 15.1.4E Ch. 15 - Multiple-Choice on Initial Investment [AICPA...Ch. 15 - Prob. 15.2E Ch. 15 - Prob. 15.3E Ch. 15 - Prob. 15.4E Ch. 15 - Prob. 15.5E Ch. 15 - Prob. 15.6E Ch. 15 - Prob. 15.7E Ch. 15 - Prob. 15.8.1E Ch. 15 - Prob. 15.8.2E Ch. 15 - Prob. 15.8.3E Ch. 15 - Prob. 15.8.4E Ch. 15 - Prob. 15.8.5E Ch. 15 - Prob. 15.8.6E Ch. 15 - Prob. 15.8.7E Ch. 15 - Prob. 15.8.8E Ch. 15 - Prob. 15.9E Ch. 15 - Retirement of a Partner On January 1, 20X1, Eddy...Ch. 15 - Prob. 15.11P Ch. 15 - Prob. 15.12P Ch. 15 - Prob. 15.13P Ch. 15 - Prob. 15.14P Ch. 15 - Withdrawal of a Partner under Various Alternatives...Ch. 15 - Prob. 15.16.1P Ch. 15 - Prob. 15.16.2P Ch. 15 - Prob. 15.16.3P Ch. 15 - Prob. 15.16.4P Ch. 15 - Prob. 15.16.5P Ch. 15 - Prob. 15.16.6P Ch. 15 - Prob. 15.16.7P Ch. 15 - Prob. 15.16.8P Ch. 15 - Prob. 15.16.9P Ch. 15 - Prob. 15.17P Ch. 15 - Initial investments and Tax Bases [AICPA Adapted]...Ch. 15 - Prob. 15.19P

Knowledge Booster

Background pattern image

Similar questions

SEE MORE QUESTIONS

Recommended textbooks for you

SWFT Comprehensive Vol 2020
Accounting
ISBN:9780357391723
Author:Maloney
Publisher:Cengage
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
SWFT Comprehensive Volume 2019
Accounting
ISBN:9780357233306
Author:Maloney
Publisher:Cengage

Text book image

SWFT Comprehensive Vol 2020

Accounting

ISBN:9780357391723

Author:Maloney

Publisher:Cengage

Text book image

Principles of Accounting Volume 1

Accounting

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax College

Text book image

SWFT Comprehensive Volume 2019

Accounting

ISBN:9780357233306

Author:Maloney

Publisher:Cengage

SEE MORE TEXTBOOKS