ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 16.3Q
To determine
Liquidation of partnership: Winding-up and liquidation of the partnership begin after its dissolution. The winding-up process includes the transactions necessary to liquidate the partnership, such as collection of receivables disposal of noncash assets, payment of partnership’s obligations and distribution of any remaining net balance to the partners, in cash according to their capital interests. If partnership agreement does not have any provisions on liquidation or any
the implications on other partners when one partner is personally insolvent in the situation of liquidation.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Potential partners might not want to form a partnership because of the risk of having their personal property forfeited in favor of the business's creditors.
O True
O False
2. One characteristic of partnership is a mutual agency, wherein the act of one is the act of the
rest of the partnership. With that, are you willing to take blame or responsibility for the wrongful
doing of a partner even though he has willingly concealed the circumstances?
file a case against a partnership, without
impleading the partners and the partnership is
then held liable by the court, will the partners'
If
you
personal assests be also held liable, if the
partnerships assets are insufficient?
Chapter 16 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 16 - What are the major causes of a dissolution? What...Ch. 16 - Prob. 16.2QCh. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Contrast a lump-sum liquidation with an...Ch. 16 - Prob. 16.6QCh. 16 - Prob. 16.7QCh. 16 - Prob. 16.8QCh. 16 - Prob. 16.9QCh. 16 - Prob. 16.10Q
Ch. 16 - Prob. 16.11QCh. 16 - The installment liquidation process uses a...Ch. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Cash Distributions to Partners Analysis The...Ch. 16 - Prob. 16.2CCh. 16 - Prob. 16.3CCh. 16 - Sharing Losses during Liquidation Research Hiller,...Ch. 16 - Prob. 16.1.1ECh. 16 - Prob. 16.1.2ECh. 16 - Prob. 16.1.3ECh. 16 - Prob. 16.1.4ECh. 16 - Prob. 16.1.5ECh. 16 - Prob. 16.1.6ECh. 16 - Prob. 16.1.7ECh. 16 - Prob. 16.2.1ECh. 16 - Prob. 16.2.2ECh. 16 - Prob. 16.2.3ECh. 16 - Prob. 16.2.4ECh. 16 - Prob. 16.2.5ECh. 16 - Prob. 16.2.6ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Prob. 16.7ECh. 16 - Prob. 16.8ECh. 16 - Confirmation of Cash Distribution Plan Refer to...Ch. 16 - Prob. 16.10ECh. 16 - Prob. 16.11.1AECh. 16 - Prob. 16.11.2AECh. 16 - Prob. 16.11.3AECh. 16 - Prob. 16.11.4AECh. 16 - Prob. 16.11.5AECh. 16 - Prob. 16.11.6AECh. 16 - Prob. 16.11.7AECh. 16 - Prob. 16.11.8AECh. 16 - Prob. 16.11.9AECh. 16 - Prob. 16.11.10AECh. 16 - Prob. 16.11.11AECh. 16 - Prob. 16.12AECh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 16.18PCh. 16 - Matching Terms Match the items in the left-hand...Ch. 16 - Prob. 16.20P
Knowledge Booster
Similar questions
- What decreases a partner's interest in a partnership?arrow_forwardIn the liquidation of a partnership, why might a partner be concerned that a fellow partner has a deficit net capital balance, and how might such a deficit be eliminated?arrow_forwardHow may the capital deficiency of an insolvent partner can be eliminated?arrow_forward
- Why is it important for all partners in a partnership to be on the same page in regard to the method used? What happens if they can not agree?arrow_forwardTrue or False. The admission of a partner does not change the composition of the partners’ equity if the new partner purchases the old partner’s interest by paying the old partner directly. Please explain why thanksarrow_forwardWhat causes a partnership to dissolve?arrow_forward
- Being in a business of partnership: O a. Increases Individual risk O b. None of these O c. Does not involves any individual risk d. Decreases Individual riskarrow_forwardThis characteristic explains why partners have a right to choose or refuse who they want to be associated with in the partnership. O Contractual relationship Based on contract O Mutual agency O Voluntary associationarrow_forwardHow does the risk associated with investment in a partnership differ for the general partner versus a limited partner?arrow_forward
- Which of the following is not a characteristic of a partnership? O It has unlimited liability. O There is ease of transferring ownership. O There is co-ownership of property. O It can be easily dissolved.arrow_forwardQ1.)Why do you think an industrial partner does not share in the losses of partnership?Q2.)If you decide to join a partnership, which type of admission would you choose and why?Q3.)How may the capital deficiency of an insolvent partner can be eliminated?arrow_forwardI. TRUE OR FALSE. Write TRUE if the statement is correct and FALSE if the statement is wrong. 1. The consent of the other partners is not necessary when admitting a new partner. 2. If a partner dies, the partnership is dissolved. 3. Admission of new partner by purchase of interest is recorded by a debit to the capital account of the buying partner. 4. The admission of a new partner by purchase of interest does not affect the total partner's equity. 5. The admission of a new partner by investment is a transaction between the buying and selling partner. 6. There is increase in assets with corresponding increase in capital under admission of a new partner by investment. 7. There is bonus if the total contributed capital is equal to the total agreed capital. 8. Goodwill refers to the ability of the firm to earn more than what is normal. 9. In liquidation, the partnership continues to operate. 10. In the exercise of the right of offset, the amount offset is the balance of the loan balance…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,