Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Question
Chapter 16, Problem 16.8Q
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 if some of the partners can terminate the partnership when the partnership becomes unlawful because of change in law, and partnership engagement is no longer lawful.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Which of the following is true about a partnership?
The old partnership ends only upon the withdrawal of a partner.
The old partnership ends upon the acceptance of a new partner.
If a new partner is admitted to the partnership, the old partnership must liquidate.
Partnerships have an unlimited life.
Only one owner is allowed in a Partnership.
Which of the following is the reason to not revalue partnership assets at the date a new partner is admitted to the partnership?
Group of answer choices
A. All three are reasons to not revalue partnership assets at the date of new partner’s admission
B. The partnership has not ceased operations
C. There has been a change in the ownership
D. A new legal entity exists
Which of the following is the reason to not revalue partnership assets at the date a new partner is admitted to the partnership?
A. There has been a change in the ownership
B. The partnership has not ceased operations
C. All three are reasons to not revalue partnership assets at the date of new partner's admission
D. A new legal entity exists
Chapter 16 Solutions
Advanced Financial Accounting
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
- When a partnership dissolves, the last step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partnersarrow_forwardIf a new partner acquires partnership interest directly from the partners rather than from the partnership, a. no entry is required. b. the existing partnership is liquidated. c. the partnership assets should not be revalued because this type of transaction does not result to partnership dissolution. d. the existing partners’ capital accounts are reduced and the new partner’s capital account is increased.arrow_forwardWhat is the answer to this question?arrow_forward
- According to the RUPA, a new partner is admitted to a partnership if a majority of the partners consent. TRUE OR FALSE Which of the following refers to the sale of the partnership’s assets during the winding up process? Multiple Choice Destruction. Termination. Dissociation. Elimination. Liquidation.arrow_forwardWhich of the following statements regarding partnership is incorrect? a. Changes in the relationship of the partners may dissolve the partnership. b. The contributions of the partners to business are owned by the partnership. c. A partnership has a separate legal identity. d. A partnership is said to have an unlimited life because its legal life of 50 years can be renewed for an indefinite number of renewals.arrow_forwardWhich of the following instances does not dissolve the partnership? Group of answer choices a. Admission of Mr. X in the ANC Partnership. b. Assignment of partners’ interest to another partner. c. Insanity of a partner in the partnership. d. Investment of a new partner in the partnership. Which of the following instances does not dissolve the partnership? Group of answer choices a. Admission of Mr. X in the ANC Partnership. b. Assignment of partners’ interest to another partner. c. Insanity of a partner in the partnership. d. Investment of a new partner in the partnership. When Jill retired from the partnership of Jill, Bill and Hill, the final settlement of her interest exceeded her capital balance. Under the bonus method, the excess Group of answer choices a. Had no effect on the capital balances of Bill and Hill. b. Was recorded as an expense. c. Reduced the capital balance of Bill and Hill. d. Was recorded as goodwill. I. The use of average…arrow_forward
- Choose the response that correctly completes the following sentence about an individual partner's outside basis in a partnership. A partner's outside basis: Can be less than zero. Does not change as long as the partner maintains their partnership interest. Is used to apply the basis limitation to losses from a partnership. Must be tracked by the partnership.arrow_forwardAnswer the following questions: 1.What is dissolution of a partnership? During dissolution of partnership, is the partnership terminated? Art. 1828 and 1829 2. What causes dissolution Of a partnership? Art. 1830 3. After the dissolution of the partnership, how will the assets of the partnership be liquidated and accounted for? Alt. 1839arrow_forwardWhich of the following statements is correct when a new partner is admitted to an existing partnership by purchasing a portion of a capital interest of an existing partner? a. The partnership will recognize gain or loss in the transfer of capital from one partner to another partner. b.The partnership is not dissolved by the admission of a new partner by purchase. c.It will result to revaluation or impairment of existing assets of the partnership. d. It will just result to credit to capital of newly admitted partner with corresponding debit to capital of the selling partnerarrow_forward
- If there is no written, legal agreement for the partnership then which one of the following will apply: a. Partners are entitled to salary b. Interest on capital is not allowed c. Partners are entitled to bonus d. Interest will be charged on drawingsarrow_forwardWhat is the answer to this question?arrow_forwardIf a new partner is admitted in the partnership through purchase of interest. The purchase price paid by the new partner is not recorded in the partnership book O Total partnership assets and capital will change The purchase price paid by the new partner is recorded in the partnership books O Capital interest should only be sold at book valuearrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College