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Business Accounting 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 implied goodwill .

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 implied goodwill .

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

Advanced Financial Accounting

Advanced Financial Accounting

11th Edition

ISBN: 9780078025877

Author: Theodore E. Christensen, David M Cottrell, Cassy JH Budd Advanced Financial Accounting

Publisher: McGraw-Hill Education

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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 15.8.4E

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 implied goodwill.

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Chapter 15, Problem 15.8.3E

Chapter 15, Problem 15.8.5E

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Chapter 15 Solutions

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

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