This document contains a true/false and multiple choice partnership reviewer with 57 true/false statements and 58 multiple choice questions about partnerships. It covers topics such as the definition of a partnership, characteristics of general partnerships, advantages and disadvantages of partnerships compared to corporations, admitting and withdrawing partners, partnership dissolution and liquidation. The reviewer is intended to assess a student's understanding of key concepts relating to partnerships.
AC102 PPT8 - Partnership Liquidation Lump Sum (PPT from Sir Leandro Fua) Carla
The document provides details about the liquidation of the partnership firm of Encina, Endrada, and Elina. It includes their statement of financial position before liquidation begins and statements of liquidation showing the realization of assets, distribution of gains or losses, payment of liabilities, and distribution of cash to partners under different scenarios of asset sale prices and treatment of capital deficiencies.
This document provides an overview of auditing specialized industries and the audit of banks' financial statements. It discusses key concepts such as:
- Specialized industries have unique accounting and reporting standards that auditors must understand.
- When auditing specialized industries, auditors must ensure competence in the industry and obtain relevant guidance for risks and standards. They may rely on industry experts.
- Banks have distinguishing characteristics like risk of losses, fiduciary responsibilities, and regulatory oversight. Auditors of banks must understand the various risks banks face.
- Transaction cycles and risks in the banking industry like credit, market, operational, and fraud risks must be considered in audit planning and procedures.
The document provides an overview of chapter 1 of the textbook "Advanced Financial Accounting and Reporting, Part 1" which covers accounting for partnerships. The chapter objectives are to understand the characteristics of partnerships, accounting entries related to forming, admitting, and withdrawing partners from a partnership, bases for dividing net income/loss, and partnership financial statements. The summary covers partnership characteristics like association of individuals, mutual agency, limited life, unlimited liability, and co-ownership of property. It also discusses the accounting entries for forming a partnership such as recording partners' investments.
This document discusses partnerships, including their formation, operation, and changes in membership. It covers key topics such as:
- What constitutes a partnership and who can be partners
- The partnership agreement and areas it typically addresses
- Accounting for partner capital accounts, initial investments, additional investments, withdrawals, and profit/loss allocation
- Admitting new partners through the purchase of an interest from an existing partner, including potential revaluation of partnership assets
This document summarizes key provisions related to partnerships under Philippine law. It defines a partnership as an agreement between two or more persons to contribute money, property, or industry to a common fund, with the intention of dividing profits. A partnership has a separate legal personality from its partners. The document also provides rules for determining whether a partnership exists, noting that profit-sharing alone does not constitute a partnership. It outlines requirements for partnerships over 3,000 PHP to be in writing and recorded.
This document summarizes key concepts in corporate law. It discusses how corporations are classified as stock or non-stock. It also covers the separate legal personality of corporations, corporate tort liability, piercing the corporate veil, determining corporate nationality, and the retroactive effect of amending corporate documents. Additionally, it addresses topics such as share classifications, redeemable shares, treasury shares, and the rules regarding non-voting shares.
This document defines and provides examples of major types of accounts used in accounting, including assets, liabilities, capital/equity, income/revenue, and expenses. Assets are divided into current assets (those expected to be converted to cash within one year) and non-current assets. Current assets include cash, accounts receivable, inventory, and prepaid expenses. Non-current assets include long-term tangible and intangible property. Liabilities are also split between current and non-current, with current liabilities expected to be paid within one year. Capital/equity represents the owner's residual claim in the business assets. Income increases equity, while expenses decrease equity.
The document discusses the Statement of Changes in Equity (SoCE), including its purpose, elements, and how it is presented depending on the form of business organization. It covers sole proprietorships, partnerships, and corporations. For sole proprietorships, the SoCE summarizes the owner's capital account transactions. For partnerships, it shows the capital account of each partner. For corporations, it tracks the balances of capital stock, additional paid-in capital, and retained earnings accounts. The document also provides examples of how to prepare SoCE for different business types.
AC102 PPT8 - Partnership Liquidation Lump Sum (PPT from Sir Leandro Fua) Carla
The document provides details about the liquidation of the partnership firm of Encina, Endrada, and Elina. It includes their statement of financial position before liquidation begins and statements of liquidation showing the realization of assets, distribution of gains or losses, payment of liabilities, and distribution of cash to partners under different scenarios of asset sale prices and treatment of capital deficiencies.
This document provides an overview of auditing specialized industries and the audit of banks' financial statements. It discusses key concepts such as:
- Specialized industries have unique accounting and reporting standards that auditors must understand.
- When auditing specialized industries, auditors must ensure competence in the industry and obtain relevant guidance for risks and standards. They may rely on industry experts.
- Banks have distinguishing characteristics like risk of losses, fiduciary responsibilities, and regulatory oversight. Auditors of banks must understand the various risks banks face.
- Transaction cycles and risks in the banking industry like credit, market, operational, and fraud risks must be considered in audit planning and procedures.
The document provides an overview of chapter 1 of the textbook "Advanced Financial Accounting and Reporting, Part 1" which covers accounting for partnerships. The chapter objectives are to understand the characteristics of partnerships, accounting entries related to forming, admitting, and withdrawing partners from a partnership, bases for dividing net income/loss, and partnership financial statements. The summary covers partnership characteristics like association of individuals, mutual agency, limited life, unlimited liability, and co-ownership of property. It also discusses the accounting entries for forming a partnership such as recording partners' investments.
This document discusses partnerships, including their formation, operation, and changes in membership. It covers key topics such as:
- What constitutes a partnership and who can be partners
- The partnership agreement and areas it typically addresses
- Accounting for partner capital accounts, initial investments, additional investments, withdrawals, and profit/loss allocation
- Admitting new partners through the purchase of an interest from an existing partner, including potential revaluation of partnership assets
This document summarizes key provisions related to partnerships under Philippine law. It defines a partnership as an agreement between two or more persons to contribute money, property, or industry to a common fund, with the intention of dividing profits. A partnership has a separate legal personality from its partners. The document also provides rules for determining whether a partnership exists, noting that profit-sharing alone does not constitute a partnership. It outlines requirements for partnerships over 3,000 PHP to be in writing and recorded.
This document summarizes key concepts in corporate law. It discusses how corporations are classified as stock or non-stock. It also covers the separate legal personality of corporations, corporate tort liability, piercing the corporate veil, determining corporate nationality, and the retroactive effect of amending corporate documents. Additionally, it addresses topics such as share classifications, redeemable shares, treasury shares, and the rules regarding non-voting shares.
This document defines and provides examples of major types of accounts used in accounting, including assets, liabilities, capital/equity, income/revenue, and expenses. Assets are divided into current assets (those expected to be converted to cash within one year) and non-current assets. Current assets include cash, accounts receivable, inventory, and prepaid expenses. Non-current assets include long-term tangible and intangible property. Liabilities are also split between current and non-current, with current liabilities expected to be paid within one year. Capital/equity represents the owner's residual claim in the business assets. Income increases equity, while expenses decrease equity.
The document discusses the Statement of Changes in Equity (SoCE), including its purpose, elements, and how it is presented depending on the form of business organization. It covers sole proprietorships, partnerships, and corporations. For sole proprietorships, the SoCE summarizes the owner's capital account transactions. For partnerships, it shows the capital account of each partner. For corporations, it tracks the balances of capital stock, additional paid-in capital, and retained earnings accounts. The document also provides examples of how to prepare SoCE for different business types.
This document provides information about partnerships under Philippine law. It defines a partnership as two or more persons binding themselves to contribute money, property, or industry to a common fund with the intention of dividing profits. Key requirements for a valid partnership include: a lawful object or purpose for the common benefit of partners; contributions from partners; and an agreement to share profits. Partnerships have a separate legal personality from partners. For partnerships with capital over PHP 3,000, execution of a public instrument and registration with the SEC is required. Unlawful partnerships may result in profit confiscation by the state.
The document discusses the dissolution of partnerships through changes in ownership. It defines dissolution as a change in the relationship between partners caused by any partner ceasing to be involved in the business. Dissolution is distinguished from liquidation, which ends the business operations. Causes of dissolution include the admission, withdrawal, death, or incorporation of a partner. A new partner can be admitted through purchasing an interest from existing partners or investing new assets, with the consent of continuing partners. Accounting entries are provided to record various scenarios of partner admission.
- The document provides information from a proof of cash reconciliation for Bedlam Company for the month of December.
- It includes opening and closing cash balances per books and bank statements, as well as bank debits/credits and book debits/credits for the month.
- There are also reconciling items like outstanding checks, deposits in transit, and an erroneous bank charge that need to be accounted for.
- An adjusting entry is needed on December 31 to properly record a note receivable that was deposited but not yet collected in December.
CHAPTER 2 BUSINESS COMBINATIONS - PART 2.pptxEricaMaeGuzman
This document discusses accounting for business combinations, including:
1) Share-for-share exchanges are measured at the acquisition-date fair value of the acquiree's or acquirer's equity interests.
2) A business combination achieved in stages occurs when an investor acquires additional shares of an investee, obtaining control, and requires remeasuring the previously held equity interest.
3) For a business combination achieved without consideration transferred, the acquirer substitutes the fair value of its interest in the acquiree for the consideration transferred to measure goodwill or gain.
This document provides an overview of corporation accounting, including:
1) It discusses the process of forming a corporation through incorporation and securing equity financing through the issuance of stock. Some key advantages and disadvantages of the corporate form are outlined.
2) It covers different financing options like debt versus equity, and how stocks work on private and public corporations. The roles of common stock and preferred stock are defined.
3) Key terms related to stock like authorized shares, issued shares, outstanding shares, and treasury stock are explained.
This document contains multiple choice answers and solutions for questions about accounting for long-term construction contracts. It includes 16 questions with answers that apply the percentage of completion and zero profit methods. Key details provided in the solutions include contract prices, total estimated costs, cost incurred to date, estimated costs to complete, percentages of completion, and gross profits recognized or earned in each period.
The document discusses accounting for current liabilities related to premiums, rebates, and loyalty programs offered by companies to customers. It provides examples of accounting entries for premium plans where goods like bowls are offered to customers in exchange for product wrappers/labels. It also discusses how to account for estimated liabilities from cash rebates and discount coupons expected to be redeemed in the future according to past redemption rates. The document concludes with an example of how to account for a customer loyalty program under IFRS 15, where points earned today may be redeemed for future goods/services.
This document discusses taxation on donations or gifts in the Philippines. It covers various topics:
1) Definitions of donations and the essential elements of a valid donation including donor capacity, donative intent, delivery, and acceptance of the gift.
2) Classification of donors as citizens/residents or nonresidents and what donations are taxable depending on this classification. Gross gifts include all property donated regardless of location for citizens/residents but only include property within the Philippines for nonresidents.
3) Allowable deductions from gross gifts including dowries, encumbrances assumed by the donee, donations to government/non-profits, and the standard 100,000 peso exemption for yearly donations to
This document outlines various national taxes imposed in the Philippines, including income tax, estate tax, value-added tax, excise taxes, customs duties, and other taxes. It provides details on income tax rates and calculations, defining terms like gross income, taxable income, deductions, exemptions, and who is required to file an income tax return.
The document provides information about financial reporting and annual reports for companies. It discusses key components of annual reports including the director's report, financial statements, audit report, income statement, balance sheet, cash flow statement, and statement of owner's equity. It also covers notes to the financial statements, stakeholders' interests in financial statements, qualities and limitations of financial statements, responsibilities for financial statements, misleading financial statements, and consequences of unreliable financial statements.
This document discusses key concepts related to the statement of cash flows (SCF). It begins by outlining the learning objectives for understanding the SCF. It then defines cash and the cash account, explaining the sources and uses of cash. It introduces the SCF and describes its three sections for reporting cash flows from operating, investing, and financing activities. Examples of transactions in each section are provided. The document also demonstrates how to analyze changes in accounts like accounts receivable, inventory, and accounts payable to determine cash amounts. It contrasts the direct and indirect methods for preparing the operating activities section of the SCF.
03 chapter 4 deductions from gross estate part 02Flab Villasencio
This document discusses various deductions that can be taken from a gross estate for tax purposes in the Philippines, including ordinary expenses, losses, indebtedness, taxes, transfers for public use, and amounts received by heirs. It provides details on vanishing deductions, which allow a deduction on property received within 5 years that was previously taxed. An example calculation is shown for a vanishing deduction involving property inherited by Gina Dan from her mother Pina Dan that increased in value over time.
This document discusses key concepts regarding corporations under Philippine law. It defines a corporation as an artificial being created by law that has rights of succession and powers authorized by its charter. It also distinguishes between types of corporations like stock and non-stock, as well as domestic and foreign corporations. The roles of incorporators, corporators, stockholders and members are outlined. Finally, it notes some components of a corporation like its capacity and the activities of promoters.
The document discusses the periodicity concept in accounting and the need for adjustments. It covers the types of accounting periods including fiscal year, calendar year, and interim periods. It also discusses the revenue and expense recognition principles. The main types of adjustments are for deferrals, such as prepaid expenses and depreciation, and for accruals. Examples are provided for recording prepaid rent and supplies using both the asset and expense methods. Depreciation is also explained as an allocation of the cost of long-term assets over their estimated useful lives.
Accounting Concepts and Principles with ExamplesRahul's Ventures
The document discusses key accounting concepts and principles that guide the preparation of financial statements. It describes 12 major concepts: business entity, money measurement, going concern, historical cost, prudence, materiality, objectivity, consistency, accruals/matching, realization, uniformity, and disclosure. The concepts establish guidelines around recognizing, valuing, and reporting economic events to help ensure financial statements provide a fair representation of a company's financial position and performance.
The document discusses various methods for allocating profits and losses among partners in a partnership. It provides examples of journal entries to record profit or loss allocations based on the partners' capital account balances and ratios. The examples allocate $300,000 in profit equally, based on original capital contributions, ending capital balances, and average capital balances. It also provides an example of allocating profit by providing 15% interest on average capital balances and splitting the remaining balance equally.
The document contains 20 multiple choice questions testing knowledge of obligations and contracts law. It covers various topics like types of obligations, modes of extinguishing obligations, conditional and potestative contracts, and elements of legal compensation. Understanding obligations and contracts law is important as it governs the terms and conditions agreed upon by parties to a contract, helping to avoid disputes and achieve order between contractual parties. Even in simple everyday transactions, people unconsciously apply basic legal principles of obligations and contracts through their actions and interactions, showing how the law is integrated into various activities and dealings.
Value Added Tax (VAT) is a tax on the value added to goods and services at each stage of production and distribution. The Value Added Tax Reform Act of 2005 established VAT at 12% and applies to persons or businesses with gross sales or receipts over P1.9 million per year. VAT is imposed on the sale, barter, or lease of both goods and services, as well as deemed sales such as business distributions or transfers. Certain sales are zero-rated like exports and foreign currency sales. Taxpayers compute VAT payable by subtracting allowable input tax credits from total output tax due.
Lecture 22 expenditure cycle part ii - payroll processing accounting informa...Habib Ullah Qamar
Expenditure Cycle part II in which Payroll Processing system is discussed in three regards: Conceptual , Physical (manual and Computerized) and Fixed Asset Processing Systesm
This document discusses key concepts relating to contracts under Philippine law. It defines important terms like cause, motive, inadequacy of cause, and reformation. It also discusses requisites of a valid contract, effects of false cause, distinguishing objects and causes in contracts of sale, and when reformation of a written contract is permitted compared to annulment. Several problems are presented relating to determining the legality of contracts and eligibility for reformation in cases of mutual mistake.
This document contains multiple choice questions and solutions for a chapter on partnership liquidation by installment. It includes examples of partnership liquidation scenarios showing capital account balances, loan balances, losses, and cash distributions for various partners. The examples are presented to test understanding of how losses are allocated and cash is distributed during partnership liquidations.
1) The document provides examples and solutions to multiple choice questions about changes in partnership ownership, including admissions, retirements, and dissolutions.
2) It includes calculations of goodwill, capital account balances, cash distributions, and partnership interests in various scenarios.
3) The questions and answers cover topics like implied capital value, capital transfers on admission, bonus allocations, and adjusting capital balances.
This document provides information about partnerships under Philippine law. It defines a partnership as two or more persons binding themselves to contribute money, property, or industry to a common fund with the intention of dividing profits. Key requirements for a valid partnership include: a lawful object or purpose for the common benefit of partners; contributions from partners; and an agreement to share profits. Partnerships have a separate legal personality from partners. For partnerships with capital over PHP 3,000, execution of a public instrument and registration with the SEC is required. Unlawful partnerships may result in profit confiscation by the state.
The document discusses the dissolution of partnerships through changes in ownership. It defines dissolution as a change in the relationship between partners caused by any partner ceasing to be involved in the business. Dissolution is distinguished from liquidation, which ends the business operations. Causes of dissolution include the admission, withdrawal, death, or incorporation of a partner. A new partner can be admitted through purchasing an interest from existing partners or investing new assets, with the consent of continuing partners. Accounting entries are provided to record various scenarios of partner admission.
- The document provides information from a proof of cash reconciliation for Bedlam Company for the month of December.
- It includes opening and closing cash balances per books and bank statements, as well as bank debits/credits and book debits/credits for the month.
- There are also reconciling items like outstanding checks, deposits in transit, and an erroneous bank charge that need to be accounted for.
- An adjusting entry is needed on December 31 to properly record a note receivable that was deposited but not yet collected in December.
CHAPTER 2 BUSINESS COMBINATIONS - PART 2.pptxEricaMaeGuzman
This document discusses accounting for business combinations, including:
1) Share-for-share exchanges are measured at the acquisition-date fair value of the acquiree's or acquirer's equity interests.
2) A business combination achieved in stages occurs when an investor acquires additional shares of an investee, obtaining control, and requires remeasuring the previously held equity interest.
3) For a business combination achieved without consideration transferred, the acquirer substitutes the fair value of its interest in the acquiree for the consideration transferred to measure goodwill or gain.
This document provides an overview of corporation accounting, including:
1) It discusses the process of forming a corporation through incorporation and securing equity financing through the issuance of stock. Some key advantages and disadvantages of the corporate form are outlined.
2) It covers different financing options like debt versus equity, and how stocks work on private and public corporations. The roles of common stock and preferred stock are defined.
3) Key terms related to stock like authorized shares, issued shares, outstanding shares, and treasury stock are explained.
This document contains multiple choice answers and solutions for questions about accounting for long-term construction contracts. It includes 16 questions with answers that apply the percentage of completion and zero profit methods. Key details provided in the solutions include contract prices, total estimated costs, cost incurred to date, estimated costs to complete, percentages of completion, and gross profits recognized or earned in each period.
The document discusses accounting for current liabilities related to premiums, rebates, and loyalty programs offered by companies to customers. It provides examples of accounting entries for premium plans where goods like bowls are offered to customers in exchange for product wrappers/labels. It also discusses how to account for estimated liabilities from cash rebates and discount coupons expected to be redeemed in the future according to past redemption rates. The document concludes with an example of how to account for a customer loyalty program under IFRS 15, where points earned today may be redeemed for future goods/services.
This document discusses taxation on donations or gifts in the Philippines. It covers various topics:
1) Definitions of donations and the essential elements of a valid donation including donor capacity, donative intent, delivery, and acceptance of the gift.
2) Classification of donors as citizens/residents or nonresidents and what donations are taxable depending on this classification. Gross gifts include all property donated regardless of location for citizens/residents but only include property within the Philippines for nonresidents.
3) Allowable deductions from gross gifts including dowries, encumbrances assumed by the donee, donations to government/non-profits, and the standard 100,000 peso exemption for yearly donations to
This document outlines various national taxes imposed in the Philippines, including income tax, estate tax, value-added tax, excise taxes, customs duties, and other taxes. It provides details on income tax rates and calculations, defining terms like gross income, taxable income, deductions, exemptions, and who is required to file an income tax return.
The document provides information about financial reporting and annual reports for companies. It discusses key components of annual reports including the director's report, financial statements, audit report, income statement, balance sheet, cash flow statement, and statement of owner's equity. It also covers notes to the financial statements, stakeholders' interests in financial statements, qualities and limitations of financial statements, responsibilities for financial statements, misleading financial statements, and consequences of unreliable financial statements.
This document discusses key concepts related to the statement of cash flows (SCF). It begins by outlining the learning objectives for understanding the SCF. It then defines cash and the cash account, explaining the sources and uses of cash. It introduces the SCF and describes its three sections for reporting cash flows from operating, investing, and financing activities. Examples of transactions in each section are provided. The document also demonstrates how to analyze changes in accounts like accounts receivable, inventory, and accounts payable to determine cash amounts. It contrasts the direct and indirect methods for preparing the operating activities section of the SCF.
03 chapter 4 deductions from gross estate part 02Flab Villasencio
This document discusses various deductions that can be taken from a gross estate for tax purposes in the Philippines, including ordinary expenses, losses, indebtedness, taxes, transfers for public use, and amounts received by heirs. It provides details on vanishing deductions, which allow a deduction on property received within 5 years that was previously taxed. An example calculation is shown for a vanishing deduction involving property inherited by Gina Dan from her mother Pina Dan that increased in value over time.
This document discusses key concepts regarding corporations under Philippine law. It defines a corporation as an artificial being created by law that has rights of succession and powers authorized by its charter. It also distinguishes between types of corporations like stock and non-stock, as well as domestic and foreign corporations. The roles of incorporators, corporators, stockholders and members are outlined. Finally, it notes some components of a corporation like its capacity and the activities of promoters.
The document discusses the periodicity concept in accounting and the need for adjustments. It covers the types of accounting periods including fiscal year, calendar year, and interim periods. It also discusses the revenue and expense recognition principles. The main types of adjustments are for deferrals, such as prepaid expenses and depreciation, and for accruals. Examples are provided for recording prepaid rent and supplies using both the asset and expense methods. Depreciation is also explained as an allocation of the cost of long-term assets over their estimated useful lives.
Accounting Concepts and Principles with ExamplesRahul's Ventures
The document discusses key accounting concepts and principles that guide the preparation of financial statements. It describes 12 major concepts: business entity, money measurement, going concern, historical cost, prudence, materiality, objectivity, consistency, accruals/matching, realization, uniformity, and disclosure. The concepts establish guidelines around recognizing, valuing, and reporting economic events to help ensure financial statements provide a fair representation of a company's financial position and performance.
The document discusses various methods for allocating profits and losses among partners in a partnership. It provides examples of journal entries to record profit or loss allocations based on the partners' capital account balances and ratios. The examples allocate $300,000 in profit equally, based on original capital contributions, ending capital balances, and average capital balances. It also provides an example of allocating profit by providing 15% interest on average capital balances and splitting the remaining balance equally.
The document contains 20 multiple choice questions testing knowledge of obligations and contracts law. It covers various topics like types of obligations, modes of extinguishing obligations, conditional and potestative contracts, and elements of legal compensation. Understanding obligations and contracts law is important as it governs the terms and conditions agreed upon by parties to a contract, helping to avoid disputes and achieve order between contractual parties. Even in simple everyday transactions, people unconsciously apply basic legal principles of obligations and contracts through their actions and interactions, showing how the law is integrated into various activities and dealings.
Value Added Tax (VAT) is a tax on the value added to goods and services at each stage of production and distribution. The Value Added Tax Reform Act of 2005 established VAT at 12% and applies to persons or businesses with gross sales or receipts over P1.9 million per year. VAT is imposed on the sale, barter, or lease of both goods and services, as well as deemed sales such as business distributions or transfers. Certain sales are zero-rated like exports and foreign currency sales. Taxpayers compute VAT payable by subtracting allowable input tax credits from total output tax due.
Lecture 22 expenditure cycle part ii - payroll processing accounting informa...Habib Ullah Qamar
Expenditure Cycle part II in which Payroll Processing system is discussed in three regards: Conceptual , Physical (manual and Computerized) and Fixed Asset Processing Systesm
This document discusses key concepts relating to contracts under Philippine law. It defines important terms like cause, motive, inadequacy of cause, and reformation. It also discusses requisites of a valid contract, effects of false cause, distinguishing objects and causes in contracts of sale, and when reformation of a written contract is permitted compared to annulment. Several problems are presented relating to determining the legality of contracts and eligibility for reformation in cases of mutual mistake.
This document contains multiple choice questions and solutions for a chapter on partnership liquidation by installment. It includes examples of partnership liquidation scenarios showing capital account balances, loan balances, losses, and cash distributions for various partners. The examples are presented to test understanding of how losses are allocated and cash is distributed during partnership liquidations.
1) The document provides examples and solutions to multiple choice questions about changes in partnership ownership, including admissions, retirements, and dissolutions.
2) It includes calculations of goodwill, capital account balances, cash distributions, and partnership interests in various scenarios.
3) The questions and answers cover topics like implied capital value, capital transfers on admission, bonus allocations, and adjusting capital balances.
This document discusses accrual versus cash basis accounting and the adjusting process. It begins by distinguishing between accrual accounting, where transactions are recorded when revenues are earned or expenses incurred, and cash basis accounting, where transactions are recorded when cash is paid or received. The key aspects of the adjusting process covered are: applying the revenue and matching principles, making adjusting entries for prepaid, accrued, and deferred items, preparing an adjusted trial balance, and using that to make the final financial statements. The overall goal is to ensure revenues and expenses are recorded in the appropriate accounting period.
The accounting cycle is a series of 9 steps that are repeated each reporting period to record business transactions and prepare financial statements. The steps are: 1) analyze transactions, 2) journalize transactions, 3) post to ledger accounts, 4) prepare an unadjusted trial balance, 5) make adjustments, 6) prepare an adjusted trial balance, 7) make financial statements, 8) close temporary accounts, and 9) prepare a post-closing trial balance to verify the accounting records. The cycle ensures transactions are properly recorded and financial statements are prepared accurately.
Padmalochan Das is an electrical engineer with 5 years of experience in plant maintenance and automation at an automotive manufacturing company. He has skills in PLC programming, HMI development, machine troubleshooting, and project management. He holds a B.Tech in Electrical Engineering and is currently seeking a new position to make use of his technical and problem-solving abilities.
Judge Charina Sazon passed away. She dedicated her career to public service and upholding the rule of law with integrity, fairness and compassion. She will be fondly remembered and missed by her family, friends and colleagues for her kindness, wisdom and commitment to justice.
This document discusses the importance of studying research in social work. It notes that social work has elements of both an art and a science. As a science, social workers must choose interventions that are supported by evidence and know that their interventions are effective. The document then summarizes a study on holding therapy for aggressive children, noting it found significant decreases in aggression and delinquency. It also discusses evidenced-based practice in social work and the steps involved, as well as some pitfalls and benefits of taking an evidence-based approach.
The document discusses three design projects located in Richmond, Canberra, and Broadmeadows. The Richmond project is located on Bridge Rd and includes plans for a ground floor with an art gallery and teahouse. The Canberra project called 'The Lodge on the Lake' is located near Lake Burley Griffin and includes concept designs and scale studies. The Broadmeadows 2035 project involves an eco-acupuncture design for Seabrook Reserve, with plans and sections shown.
This document provides location details for filming a music video. It describes 7 locations that will be used: a music studio, TV studio, village area, skate park, transport locations of an overground platform and bus. For each location, it outlines what scenes will take place there and what shots will be captured, such as lip syncing, intimate moments between actors, and establishing shots that set the scene. The overground platform is where the main actor will first be seen lip syncing to introduce the song. A variety of techniques will be employed including fade edits, panning shots, and manipulating speed of the environment.
This document provides an introduction and overview for a training on wastewater management and protecting drinking water sources. The objectives of the training are outlined, including understanding threats from wastewater like septic systems, wastewater treatment options, project planning activities, and attracting stakeholders. The training overview lists topics that will be covered such as wastewater treatment, onsite wastewater systems, advanced treatment options, and characterization of problems. Additional resources are also listed to supplement the training. Tips are provided for effective training delivery, including knowing the audience, using examples and exercises, and making the content locally relevant. Potential audience types for the training are also outlined.
The document uses examples to demonstrate the use of was/were and wasn't/weren't in both affirmative and negative sentences. It provides statements about the location and characteristics of various subjects, including "I", "you", "he", "she", "it", "we", "they", and answers whether each statement is true or not using "yes" or "no".
This document summarizes John Zhu's summer 2013 project analyzing Shell's well log image database. He experimented with scripting approaches to manage and convert over 30,000 log image files between formats like CGM, PDF, and TIFF under Linux. His tests found that JustCGM software could efficiently convert formats while maintaining integrity. He suggested optimization and standardization opportunities to improve plotting and viewing log images.
El documento resume las perspectivas de diferentes religiones sobre la muerte. Para los cristianos y musulmanes, las personas serán juzgadas después de la muerte y enviadas al cielo o al infierno. Los hindúes creen en la reencarnación del alma en otros cuerpos. Epicuro sugirió no preocuparse por la muerte porque cuando estamos vivos no la experimentamos.
Wassim Zhani Chapter 9 Taxation of Partnerships and Partners.pdfWassim Zhani
1. The document contains true/false and multiple choice questions about taxation of partnerships and partners.
2. Key topics covered include classification of partnerships, partnership formation transactions, basis calculations, partnership distributions, and allocations.
3. The questions test understanding of core Subchapter K concepts like entity theory, aggregate theory, inside and outside basis, and capital account maintenance.
The document provides information about Stani Memorial Public School in Phagi, Jaipur, India. It outlines the syllabus and units for Accountancy Class XII for the 2020-21 academic year. The syllabus covers topics like accounting for partnership firms and companies, financial statement analysis, and cash flow statements. It also provides details about the units covered, including accounting for different partnership transactions, accounting for share capital, accounting for debentures, and analysis of financial statements. The document appears to be study material for students to help them prepare for their Accountancy examinations.
Fundamentals of Taxation 2005 – A Forms ApproachSolutions Manu.docxbudbarber38650
Fundamentals of Taxation 2005 – A Forms Approach
Solution
s Manual
PAGE CHAPTER 14DISCUSSION QUESTIONS AND PROBLEMS
Discussion Questions
1.Discuss the formation of a partnership. Is any gain or loss recognized? Explain?
2. What entity forms are considered partnerships for federal income tax purposes?
3. How does taxation for the corporate form and the partnership form differ?
4. What is the concept of basis? In your discussion, differentiate between outside basis and inside basis.
5. Elaborate on the term basis-in – basis-out. What does that phrase mean in the context of a partnership formation?
6. How can two partners, each with a 50% interest in a partnership, have different amounts of outside basis at the formation of a partnership? Shouldn’t the two partners contribute the same amount to have the same interest?
7. When a partnership receives an asset from a partner, does the partnership ever recognize a gain? What is the basis of the asset in the hands of the partnership after contribution?
8. Discuss the concept of steps into the shoes. Does how this concept pertains to the partnership, the partners, or both?
9. Why would smaller partnerships (and other businesses for that matter) use only the tax basis of accounting, which does not follow GAAP?
10. How is depreciation calculated by the partnership when a partner contributes a business asset?
11. Discuss the concepts of ordinary income and separately stated items concerning partnerships. When must a partnership item of income or loss be separately stated and why?
12. Can a partner have a salary from a partnership? Why? What is a guaranteed payment?
13. Are guaranteed payments treated as an ordinary income items or as separately stated items?
14. Is the Section 179 expense deduction allowed for partnerships? If so, is Section 179 an ordinary income item or a separately stated item? Why?
15. If a partner owns a 20% interest, does that necessarily mean that he or she will receive 20% of the net income from the partnership? Explain?
16. Is partnership income considered self-employment income? If so, how is it calculated?
17. Why must some income and gain items be separately stated in a partnership?
18. Explain why nontaxable income and nondeductible expenses increase or reduce outside basis?
19. When is it mandatory that a partner calculate his or her partner interest basis (outside basis)? What items affect the outside basis of a partner?
20. How does a partner’s share of partnership liabilities affect his or hers outside basis?
21. The general rule is that partners do not recognize any gain when he or she receives a distribution. In what circumstances might a partner recognize a gain on a current distribution?
22. Define precontribution gain? What causes a partner to recognize it?
23. Describe the rules concerning the basis of property distributed to a partner. How does the concept of “basis-in, basis-out” apply to part.
The document discusses partnerships and provides information on key topics related to partnerships including:
- What constitutes a partnership and types of partnerships such as general, limited, LLPs, and LLLPs.
- Regulations that govern partnerships at the state level, primarily the Uniform Partnership Act.
- Accounting for partnerships including establishing partner capital accounts, allocating profits and losses, and accounting for partnership operations.
- Worked problems demonstrate how to record initial capital contributions and allocate profits between partners.
1. The document is a quiz for an accounting course covering topics related to stockholders' equity. It includes 42 multiple choice and true/false questions about concepts such as common stock, preferred stock, treasury stock, retained earnings, dividends, and accounting for stock transactions.
2. The questions cover how these various components of stockholders' equity are defined, classified, and accounted for on the financial statements. For example, it asks about how treasury stock purchases and sales are recorded and how this affects retained earnings and paid-in capital.
3. The quiz aims to test students' understanding of the key terminology and accounting treatments related to presenting a corporation's stockholders' equity section of the balance sheet
This document summarizes a quiz on stockholders' equity concepts. It includes 42 multiple choice and true/false questions covering topics like common stock, preferred stock, additional paid-in capital, retained earnings, treasury stock, and dividends. The questions are conceptual in nature and test understanding of how these components are defined and reported on the balance sheet.
1. The document is a quiz for an accounting course covering topics related to stockholders' equity. It includes 42 multiple choice and true/false questions about concepts such as common stock, preferred stock, treasury stock, retained earnings, dividends, and accounting for stock transactions.
2. The questions cover how these various components of stockholders' equity are defined, classified, and accounted for on the financial statements. Correct answers are provided for the true/false questions.
3. The multiple choice questions test understanding of how to record various stock transactions such as stock issuances, reacquisitions, and sales of treasury stock under both the cost and par value methods of accounting.
This document contains a quiz on stockholders' equity concepts from chapter 15. It includes 66 multiple choice questions covering topics like common stock, preferred stock, additional paid-in capital, retained earnings, treasury stock, stock dividends, and calculations related to stockholders' equity. The questions are designed to test the reader's understanding of how various transactions impact the accounting for stockholders' equity.
Solution Manual Advanced Accounting Chapter 15 9th Edition by BakerSaskia Ahmad
The document provides information about partnerships, including:
1) Partnerships are easy to form, allow individuals to combine talents and skills, provide more equity capital than one person, and allow risk sharing.
2) Most states have enacted the Uniform Partnership Act of 1997 to regulate partnerships, describing partners' rights during formation, operation, and liquidation.
3) Partnership agreements typically include the name, business type and duration, capital contributions, profit/loss distribution, admission of new partners, and accounting methods.
This document discusses various aspects of partnerships, including:
- The definition of a partnership according to the Partnership Act 1932 as an agreement between persons to share profits and losses of a business.
- Topics covered include types of partnerships, partnership accounts, division of net income among partners, admission and retirement of partners, and characteristics of partnerships such as unlimited liability and mutual agency.
- Partnership profits are taxable individually to partners based on their share of net income for the year rather than drawings. Various methods for dividing net income among partners are discussed, including fixed ratios, salary allowances, and interest on capital balances.
The general partner of Riverside Park Associates LP is Riverside Park
Associates, Inc. The limited partners are individual and institutional investors.
c.
The limited partnership agreement specifies that the general partner is responsible for
managing the day-to-day operations of the partnership and its real estate holdings.
The limited partners have limited liability and do not participate in management.
Profits, losses, cash distributions and liquidation proceeds are allocated 99% to the
limited partners and 1% to the general partner.
d.
The balance sheet shows total assets of $145.4 million as of December 31, 2006.
The largest asset is the $135.4 million net book value of the real
Solution Manual Advanced Accounting by Baker 9e Chapter 16Saskia Ahmad
Solution Manual, Advanced Accounting, Thomas E. King, Cynthia Jeffrey, Richard E. Baker, Valdean C. Lembke, Theodore Christensen, David Cottrell, Richard Baker, Advanced Financial Accounting, Advanced Financial Accounting by Baker Chapter 18, Advanced Financial Accounting by Baker Chapter 18 9th Edition, 9th Edition,
Entity InformationEntity Type:PartnershipSub-Entity Type:GeneralEntity Name:BADECState of FormationGeorgiaEntity Start Date4/2/13Tax Year Start Date:4/2/13Tax Year End Date:12/31/13Book Maintained By:Andrew AndersonAddress:10 Sysco Way Atlanta, GA 30039Purpose of EntityAcquire, rehabilitate and resale residential real property.Allocation of Separately Stated Items (per Partnership Agreement)ItemInvestorPercentageInterest IncomeBill Bacon100%ContributionsCathy Cox20%ContributionsCathy Cox80%Net Long-term Capital Gains (Losses)Doris Day100%Net Short-term Capital Gains (Losses)Elroy Elders100%Interest IncomeFarah Fawcett100%Qualified DividendsGomez Gonzalez100%Unqualified DividendsAndrew Anderson100%Real Estate/Housing CreditsBill Bacon100%Tax Exempt Interest Income ItemsCathy Cox25%Tax Exempt Interest Income ItemsDoris Day75%
Partnership AgreementPartnership Agreement of BADEC PartnershipTHIS AGREEMENT OF PARTNERSHIP, effective as of 04/02/2014 by and between the undersigned, to wit: NOW, THEREFORE, IT IS AGREED: 1FormationThe undersigned hereby form a General Partnership in accordance with and subject to the laws of the State of Georgia.2NameThe name of the partnership shall be BADEC. 3TermThe partnership shall begin on 04/02/2014 and shall continue until December 31, 2014 of the same year and thereafter from year to year unless earlier terminated as hereinafter provided. 4PurposeAcquire, rehabilitate and resale residential real property.5MeetingsPeriodic meetings shall be held as determined by the partnership. 6Capital ContributionsThe partners may make capital contributions to the partnership on the date of each periodic meeting in such amounts as the partnership shall7Value of the Partnership.The current value of the assets of the partnership less the current value of the liabilities of the partnership (hereinafter referred as to value of the partnership) shall be determined as of the time of securities market close on the last Friday of each month. 8Capital AccountsA capital account shall be maintained in the name of each partner. Any increase or decrease in the value of the partnership on any valuation date shall be credited or debited, respectively, to each partner’s capital account in proportion to the sum of all partner capital accounts on that date. Any other method of valuating each partner’s capital account may be substituted for this method, provided the substituted method results in exactly the same valuation as previously provided herein. Each partners capital contribution to, or capital withdrawal from, the partnership, shall be credited, or debited, respectively, to that partner’s capital account.9ManagementEach partner shall participate in the management and conduct of the affairs of the partnership in proportion to the value of his/her capital account. Except as otherwise determined, all decisions shall be made by the partners whose capital accounts total a majority of the value of the capital accounts of all the pa ...
Strayer university acc 304 week 10 chapter 15 quiz (all possible questions) newshyaminfotech
ACC 304 Week 10 Quiz – Strayer NEW
Week 10 Quiz 7: Chapter 15
STOCKHOLDERS’ EQUITY
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
1. A corporation is incorporated in only one state regardless of the number of states in which it operates.
The document discusses liquidation of partnerships. It provides answers to questions about causes of partnership dissolution, implications for partners when a partnership is insolvent, types of liquidation processes (lump-sum vs. installment), and determining partner capital account balances and distributions during liquidation. It also provides solutions to case studies involving determining cash distribution plans for partners during a partnership liquidation.
This document outlines the terms of an investment partnership called Cozmik ISP. Key points:
- It is formed as a general partnership in Nevada to invest partners' assets for financial and educational benefit.
- Partners must contribute a minimum of $250 per month and can make additional $250 contributions. They will receive a 25% return on total investments every 4 months.
- Decisions are made by partners with a majority of total capital accounts. Profits and losses are shared based on capital account values.
- Books of account use double-entry accounting. An annual accounting and semi-annual audits are conducted.
- Additional partners can join with unanimous consent up to 500 total. Partners
FINANCIAL_ACCOUNTING_-_IV study material.pptran17april2001
The document defines partnership and lists the typical contents included in a partnership deed, such as the names of partners, capital contributions, profit sharing ratios, and provisions for dissolution. It also outlines rules that apply if a partnership deed is not present, such as equally sharing profits and losses. The document discusses accounting treatments for partners' capital, drawings, loans, salaries, commissions, and the profit and loss appropriation account. Capital accounts can be prepared using either a fixed or fluctuating capital method.
The document is a business plan proposal for Chelyu One Stop, a Korean cuisine service partnership in Seberang Jaya, Pulau Pinang. The proposal outlines the business type, term, capital contributions, profit/loss sharing, management duties, banking, books, termination conditions, and arbitration. It was submitted by a group of students to their lecturer for approval of their ENT 300 final project. The proposal establishes Chelyu One Stop as a service partnership with 5 equal partners contributing RM20,000 each. It details how profits/losses and duties are to be shared and how the partnership can be terminated under various conditions.
This document discusses accounting for partnerships. It defines a partnership as an association of two or more people pursuing business for profit as co-owners. Key characteristics of partnerships include ownership by multiple partners, mutual agency where partners can bind the partnership, a profit motive, and unlimited liability for partners. The document outlines partnership agreements and various partnership accounts including capital accounts, current accounts, and the profit appropriation account which is used to allocate profit or loss to individual partners.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
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1. Name:________________________ Class: ___________ Date: ___________
PARTNERSHIP REVIEWER
TRUE/FALSE
Indicate whether the statement is true or false.
1. There are only four legal structures to form and operate a business.
2. In a general partnership, each partner is individually liable to creditors for debts incurred by the partnership, to
the extent of the partner's capital balance.
3. A partnership is a legal entity separate from its owners.
4. A partnership is subject to income taxes.
5. A disadvantage of partnerships is the mutual agency of all partners.
6. Each partnership must have a written partnership agreement.
7. Each partner may withdraw the assets he or she contributed to the partnership at any time.
8. When compared to a corporation, one of the major disadvantages of the partnership is its limited life.
9. When compared to a corporation, one of the major advantages of a partnership is its ease of formation.
10. Under a Subchapter S Corporation, the IFRS allows income to pass through the corporation to the individual
stockholders without the corporation having to pay taxes on the income.
11. A Limited Liability Corporation is a business entity form designed to overcome some of the disadvantages of the
corporation and the partnership forms.
12. For tax purposes, a Limited Liability Company may elect to be treated as a partnership.
13. The Limited Liability Company may elect to be manager managed rather than member managed which means that
only authorized members may legally bind the corporation.
14. Each partner has a separate capital and withdrawal account.
15. The chart of accounts for a partnership, with the exception of drawing and capital accounts, does not differ from
the chart of accounts for a sole proprietorship.
16. When the profitallocation isbased on capital contribution,the allocation of profit for industrial partner is atlowest
available rate of division of profit in the partnership.
17. The equity reporting for a Limited Liability Corporation issimilar to that of a partnership but the changes in capital
are shown on a statement of members' equity.
18. When a partner invests noncash assets in a partnership, the assets are recorded at the partner's book value.
19. Accounts receivable contributed to the partnership are recorded at their face value.
2. 20. A new partner contributes accounts receivable to a partnership which appear in the ledger of his sole
proprietorship at $ 20,500 and there was an allowance for doubtful accounts of $ 750. If $600 of the accounts
receivables are completely worthless, the partnership accounts receivable should be debited for $19,900.
21. One reason that distributions of income and loss are prepared is to obtain the information to record a closing
entry.
22. If nothing is stated, partnership income is divided in proportion to the individual partner's capital balance.
23. The salary allocation to partners used in dividing net income would also appear as salary expense on the
partnership income statement.
24. If the articles of partnership provide for annual salary allowances of $36,000 and $18,000 to X and Y respectively
and net income is $30,000, X's share of net income is $20,000.
25. If the net income of a partnership is less than the total of the allowances provided by the partnership agreement,
the difference must be divided among the partners in the income-sharing ratio.
26. The amount that a partner withdraws as a monthly salary allowance does not affect the division of net income.
27. A devotes full time and B devotes one-half time to their partnership. If the partnership agreement is silent
concerning the division of net income, A will receive a $20,000 share of a net income of $30,000.
28. In the distribution of income,the net income is less than the salary and interest allowances granted, the remaining
balance will be a negative amount that must be divided among the partners as though it were a loss.
29. Details of the division of partnership income should normally be disclosed in the financial statements.
30. Whenever a partnership is dissolved, the assets are liquidated.
31. When a partnership dissolves, a new partnership is formed and a new partnership agreement should be prepared.
32. Many partnerships providefor the admission of new partners or withdrawals of present partners i n the partnership
agreement so that the firm may continue to operate without executing a new agreement.
33. A person may be admitted to a partnership only with the consent of all the current partners.
34. Partnership's assetaccounts should bechanged from cost to fair market value when a new partner is admitted to a
firm or an existing partner withdraws and dies.
35. In admitting a new partner, the company chooses to use the purchase of an interest method, the capital interest of
the new partner is obtained from the current partners and both the total assets and total capital are increased.
36. When a new partner purchases the entire interest of an old partner, the new partner's capital account should be
credited for the amount he or she paid to the old partner.
37. If a new partner is given a 20% interest in the firm then the new partner will receive a 20% interest in earnings.
38. When a new partner is admitted by making an investment in the partnership,the old partners' capital accounts are
always credited.
39. When a new partner is admitted by making an investment of assets in the partnership and the new partner has to
pay a premium for admission, a bonus is divided among the old partners' capital accounts.
3. 40. Williams has a capital balance of $42,000 after adjusting the assets to fair market value. Mantle contributes
$22,000 to receive a 30% interest in the new partnership. The bonus paid by Mantle is $2,800.
41. When a partner withdraws from the partnership, the partnership dissolves.
42. If not enough partnership cash or other assets are available to pay the withdrawing partner, a liability may be
created for the amount owed the withdrawing partner.
43. When a partner withdraws from the partnership by selling his or her interest back to the partnership, the
remaining partners must pay the withdrawing partner a specified amount from their personal assets.
44. X sells to A one-half of a partnership capital interest that totals $70,000 for $40,000. A's capital account in the
partnership should be credited for $40,000.
45. When a new partner is admitted to a partnership,all partnership assets should be revised to reflect current prices.
46. If a new partner is to be admitted to a partnership and a bonus is attributed to the old partnership, the bonus
should be divided between the capital accounts of the original partners according to their capital balances.
47. If retiring partner A sells his or her interest to B, the partnership should record the assets paid to A in its a ccounts
at their book values.
48. When a new partner is admitted to a partnership, bonuses attributable to either the old partnership or to the
incoming partner may be recognized in accordance with the agreement among the partners.
49. Dissolution is the term which solely means to liquidate the partnership.
50. In a partnership liquidation, gains and losses on the sale of partnership assets are divided among the partners'
capital accounts on the basis of their capital balances.
51. If the shareof losses on realization of the saleof noncash assets exceed the balance in a partner's capital account,
the resulting balance is called a deficiency.
52. In a partnership liquidation, if a partner has a debit capital balance in his or her capital account, he or she is
responsible for contributing personal assets sufficient to eliminate the deficit.
53. The process of winding up the affairs of a partnership is referred to as realization.
54. The distribution of cash, as the final process in winding up the affairs of a partnership, is based on the income-
sharing ratio.
55. If a partner's capital balance is a debit after it has absorbed its share of the loss on realization, the balance is
referred to as a deficiency.
56. In the liquidating process, any uncollected cash becomes a loss to the partnership and is divided among the
remaining partners' capital balances based on their income-sharing ratio.
57. After all noncash assets have been converted to cash and all liabilities paid, A, B, and C have ca pital balances of
$10,000 (debit), $5,000 (debit), and $25,000 (credit). The cash availablefor distribution to the partners is $10,000.
58. After all noncash assets have been converted to cash and all liabilities paid, A, B, and C have capital balances of
$15,000 (credit), $10,000 (debit), and $30,000 (credit). C's share of the cash to be distributed is $30,000.
4. MULTIPLE CHOICE
Identify the choice that best completes the statement or answers the question.
1. FORMATION
Which of the following is characteristic of a general partnership?
a. The partners have co-ownership of partnership property.
b. The partnership is subject to income tax.
c. The partnership has an unlimited life.
d. The partners have limited liability.
2. FORMATION
Which of the followingis not a characteristic of a general partnership?
a. the partnership is created by a contract
b. mutual agency
c. partners share equally in net income or net losses unless an agreement states differently
d. dissolution occurs only when all partners agree
3. FORMATION
Which of the following is an advantage of a partnership when compared to a corporation?
a. The partnership is more likely have a net income.
b. The partnership is relatively inexpensive to organize.
c. The partnership involves fewer people to operate.
d. The partnership usually hires professional managers.
4. FORMATION
Which of the following is a disadvantage of a partnership when compared to a corporation?
a. The partnership is more likely to have a net loss.
b. The partnership is easier to organize.
c. The partnership is less expensive to organize.
d. The partnership has limited life.
5. FORMATION
An advantage of the partnership form of business organization is
a. unlimited liability
b. mutual agency
c. ease of formation
d. limited life
6. FORMATION
The characteristic of a partnership that gives the authority to any partner to legally bind the partnership and all
other partners to business contracts is called
a. unlimited liability
b. ease of formation
c. mutual agency
d. dissolution
7. FORMATION
When a limited partnership is formed
a. the partnership activities are limited
b. all partners have limited liability
c. some of the partners have limited liability
5. d. none of the partners have limited liability
8. FORMATION
Which of the following below is not one of the four major forms of business entities that are discussed in this
chapter?
a. sole proprietorship
b. corporation
c. partnership
d. subchapter s corporation
9. FORMATION
Which of the following below isnota characteristic of a Limited Liability Company?
a. limited life
b. limited liability
c. file articles of organization with the state government
d. avoids mutual agency
10. FORMATION
Accounting for the day-to-day activities for a partnership or Limited Liability Company is
a. the same as the accounting for any other form of business
b. the same as the accounting for a sole proprietorship only
c. is not the same as the accounting for any other form of business
d. the same as the accounting for a corporation only
11. FORMATION
When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at
their
a. book values on the partners' books prior to their being contributed to the partnership
b. fair market value at the time of the contribution
c. original costs to the partner contributing them
d. assessed values for property purposes
12. FORMATION
As part of the initial investment, a partner contributes equipment that had originally cost $100,000 and on which
accumulated depreciation of $75,000 has been recorded. If similar equipmentwould cost $150,000 to replace and
the partners agree on a valuation of $40,000 for the contributed equipment, what amount should be debited to
the equipment account?
a. $40,000
b. $150,000
c. $100,000
d. $75,000
13. FORMATION
As part of the initial investment, Oswald contributes accounts receivable that had a balance of $25,000 in the
accounts of a soleproprietorship. Of this amount, $1,250 is completely worthless. For the remainingaccounts, the
partnership will establish a provision for possible future uncollectible accounts of $750. The amount debited to
Accounts Receivable for the new partnership is
a. $23,000
b. $25,000
c. $24,250
d. $23,750
14. PROFIT AND LOSS ALLOCATION
Jack and Jill shareincomeand losses in a 2:1 ratio after allowing for salaries to Jack of $24,000 and $30,000 to Jill.
Net income for the partnership is $48,000. Income should be divided as follows:
a. Jack, $24,000; Jill, $24,000
6. b. Jack, $21,000; Jill, $27,000
c. Jack, $32,000; Jill, $16,000
d. Jack, $20,000; Jill, $28,000
15. PROFIT AND LOSS ALLOCATION
Fred and Ethel shareincome equally. During the current year the partnership net income was $40,000. Fred made
withdrawals of $12,000 and Ethel made withdrawals of $17,000. At the beginning of the year, the capital account
balances were: Fred capital, $42,000; Ethel capital, $58,000. Fred's capital account balance at the end of the year
is
a. $76,500
b. $64,500
c. $62,000
d. $50,000
16. PROFIT AND LOSS ALLOCATION
Partnership income and losses are usually divided on the basis of interest, salaries, and stated ratios because
a. partners seldom contribute time and resources equally
b. this method reflects the amount of time devoted to the partnership by the partners
c. it is simpler than following the legal rules
d. it prevents arguments among the partners
17. PROFIT AND LOSS ALLOCATION
A ratio of 3:2:1 is the same as
a. 30%:20%:10%
b. 1/2:1/3:1/6
c. 3/10:2/10:1/20
d. both (a) and (c)
18. DISSOLUTION-ADMISSION
C and D form a partnership in which C contributes $50,000 in assets and agrees to devote half time to the
partnership. D contributed $40,000 in assets and agrees to devote full time to the partnership. How will C and D
share in the division of income?
a. 5:8
b. 1:2
c. 1:1
d. 5:4
19. PROFIT AND LOSS ALLOCATION
X and Y have original investments of $50,000 and $100,000 respectively in a partnership.The articles of partnership
includethe followingprovisionsregardingthe division of net income: interest on original investment at10%, salary
allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net income of
$90,000 is allocated to X?
a. $60,000
b. $43,000
c. $45,000
d. $47,000
20. PROFIT AND LOSS ALLOCATION
X and Y have original investments of $50,000 and $100,000 respectively in a partnership. The articles of
partnership includethe followingprovisionsregardingthedivision of net income: interest on original investment at
10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net
income of $50,000 is allocated to X?
a. $33,333
b. $23,000
7. c. $25,000
d. $27,000
21. PROFIT AND LOSS ALLOCATION
X and Y have original investments of $50,000 and $100,000 respectively in a partnership. The articles of
partnership includethe followingprovisionsregardingthedivision of net income: interest on original investment at
10%, salary allowances of $27,000 and $18,000 respectively, and the remainder equally. How much of the net loss
of $10,000 is allocated to X?
a. $10,000
b. $3,000
c. $5,000
d. $7,000
22. PROFIT AND LOSS ALLOCATION-STATEMENT OF PARTNER’S EQUITY
The articles of partnership for A B Partnership provide for a salary allowance of $5,000 per month for partner B,
with the balance of net income to be divided equally. If B made an additional investment of $10,000 during the
year and withdrew $4,000 per month, and net income for the year was $90,000, by what a mount did B's capital
increase during the year?
a. $85,000
b. $10,000
c. $37,000
d. $60,000
23. PROFIT AND LOSS ALLOCATION
If there is no written agreement as to the way income will be divided among partners
a. they will share income and losses equally
b. they will share income and losses according to their capital balances
c. they will share income and losses according to the time devoted to the business.
d. there really is no partnership agreement
24. PROFIT AND LOSS ALLOCATION
Partner A has a capital balanceof $20,000 and devotes full time to the partnership. Partner B has a capital balance
of $30,000 and devotes half time to the partnership. In what ratio is net income to be divided?
a. 3:5
b. 1:1
c. 2:3
d. 1:2
25. PROFIT AND LOSS ALLOCATION
Details of the division of net income for a partnership should be disclosed
a. in the asset section of the balance sheet
b. in the partners’ subsidiary ledger
c. in the statement of cash flows
d. in the income statement
26. PROFIT AND LOSS ALLOCATION –STATEMENT OF PARTNER’S EQUITY
Deng and Dangare partners who shareincome in the ratio of 3:2. Their capital balances are $40,000 and $60,000
respectively. Income Summary has a credit balance of $20,000. What is Deng's capital bal ance after closing
Income Summary to Capital?
a. $30,000
b. $52,000
c. $28,000
d. $32,000
8. 27. DISSOLUTION-ADMISSION
Selma pays Sally $39,000 for her 30% interest in a partnership with total net assets of $120,000. Following this
transaction, Selma's capital account should have a credit balance of
a. $36,000
b. $39,000
c. $33,000
d. more than $39,000
28. DISSOLUTION-ADMISSION
Nellie is admitted to an existing partnership by investing cash. Nellie agrees to pay a bonus for her ownership
interest because of the past success of the partnership. When Nellie's investment in the partnership is recorded
a. her capital account will be credited for more than the cash she invested
b. her capital account will be credited for the amount of cash she invested
c. a bonus will be credited for the amount of cash she invested
d. a bonus will be distributed to the old partners' capital accounts.
29. DISSOLUTION-ADMISSION
Peter and Paul are partners. The partnership capital of Peter is $40,000 and Paul is $70,000. Peter sells his
interest in the partnership to Mary for $50,000. The journal entry to record the a dmission of Mary as a new
partner would include
a. a credit to Mary's capital for $40,000
b. a credit to Paul's capital for $10,000
c. a credit Mary's capital for $50,000
d. a credit to Mary's capital for $40,000 and a credit to Paul's capital for $10,000
30. DISSOLUTION
When a partner dies, the capital account balances of the remaining partners
a. will increase
b. will decrease
c. will remain the same
d. may increase, decrease, or remain the same
31. DISSOLUTION-WITHDRAWALS
A partner withdraws from a partnership by selling her interest to another person who currently is not associated
with the firm. As a results of this transaction, the capital account balance of the other partners in the partnership
a. will increase
b. will decrease
c. will remain the same
d. may increase, decrease, or remain the same
32. DISSOLUTION-ADMISSION
Shaw and Hall are partners. The partnership capital for Shaw is $50,000 and for Hall is $60,000. Thomas is
admitted as a new partner by investing $40,000 cash. Thomas is given a 20% interest in return for her investment.
The amount of the bonus to the old partners is
a. $0
b. $18,000
c. $8,000
d. $10,000
33. DISSOLUTION-ADMISSION
A and B are partners who share income in the ratio of 2:1 and have capital balances of $50,000 and $30,000
respectively. With the consent of B, X buys one half of A's interest for $35,000. For what amount will A's capital
account be debited to record admission of X to the partnership?
a. $40,000
9. b. $15,000
c. $25,000
d. $35,000
34. DISSOLUTION-ADMISSION
A new partner may be admitted to a partnership by
a. inheriting a partnership interest
b. contributing assets to the partnership
c. purchasing a specific quantity of assets from the partnership
d. the consent of the majority of the current partners
35. DISSOLUTION
A change in the ownership of a partnership results in the
a. consolidating of the partnership
b. liquidating of the partnership
c. realization of the partnership
d. dissolution of the partnership
36. DISSOLUTION-ADMISSION
When a new partner is admitted to a partnership, there should be a(n)
a. revaluation of assets
b. realization of assets
c. allocation of assets
d. return of assets
37. DISSOLUTION-ADMISSION
When a new partner is admitted to a partnership, there should be a(n)
a. the total assets of the partnership increase
b. new capital account is added to the ledger for the new partner
c. the total owner's equity of the partnership increases
d. the cash received by the current partner represents the amount of the debit to that partner's
capital account.
38. DISSOLUTION-ADMISSION
When an additional partner is admitted to a partnership by contribution of assets to the partnership
a. the total assets of the partnership do not change
b. no liabilities can be contributed at the same time
c. the amount of the cash contribution is the same as the amount of the debit to the new partner's
capital account
d. the total of the owner's equity accounts increases
39. DISSOLUTION-ADMISSION
When a new partner is admitted to a partnership
a. a bonus may be attributable to the old partner
b. a bonus may only result from more cash being given by the new partner than the value of the of
the assets being purchased
c. a bonus agreed upon by the partners is recorded as an asset so long as the amount is within the
range set by the SEC
d. a bonus is not recorded
40. DISSOLUTION-ADMISSION
The CD Partnership owns inventory that was purchased for $65,000, has a current replacement cost of $62,500,
and is priced to sell for $95,000. At what amount should the inventory be recorded in the accounts of the new
partnership if A is to be admitted?
10. a. $97,000
b. $62,500
c. $65,000
d. $95,000
41. DISSOLUTION-ADMISSION
Immediately prior to the admission of A, the XY Partnership assets had been adjusted to current market prices,and
the capital balances of X and Y were $40,000 and $60,000 respectively. If the parties agree that the business is
worth $150,000, what is the amount of bonus that should be recognized in the accounts at the admission of A?
a. $100,000
b. $0
c. $40,000
d. $50,000
42. DISSOLUTION-ADMISSION
Stan and Olliearepartners who shareincome in the ratio of 2:3 and have capital balances of $50,000 and $30,000
respectively. Ray is admitted to the partnership and is given a 40% interest by investing $20,000. What is Stan's
capital balance after admitting Ray?
a. $20,000
b. $25,000
c. $42,000
d. $18,000
43. DISSOLUTION-ADMISSION
Stan and Olliearepartners who shareincome in the ratio of 2:3 and have capital balances of $30,000 and $50,000
respectively. Ray is admitted to the partnership and is given a 10% interest by investing $20,000. What is Ollie's
capital balance after admitting Ray?
a. $56,000
b. $34,000
c. $20,000
d. $44,000
44. DISSOLUTION-WITHDRAWALS
Tim, Don, and Hans are partners with capital balances of $20,000, $30,000, and $50,000 respectively. They share
income in the ratio of 3:2:1. Income Summary with a debit balance of $30,000 is closed to the capital accounts.
Don withdraws from the partnership. How much cash does he get upon withdrawal?
a. $30,000
b. $20,000
c. $40,000
d. $24,000
45. LIQUIDATION
A and B are partners who shareincome in the ratio of 1:2 and have capital balances of $40,000 and $70,000 at the
time they decide to terminate the partnership. After all noncash assets aresold and all liabilities are paid, there is
a cash balance of $80,000. What amount of loss on realization should be allocated to A?
a. $80,000
b. $10,000
c. $20,000
d. $30,000
46. LIQUIDATION
A partnership liquidation occurs when
a. a new partner is admitted
11. b. a partner dies
c. the ownership interest of one partner is sold to a new partner
d. the assets are sold, liabilities paid, and business operations terminated
47. LIQUIDATION
The balance sheet of Marilyn and Monroe was as follows immediately prior to the partnership being liquidated:
cash,$20,000;other assets,$160,000;liabilities,$40,000; Marilyn capital, $60,000; Monroe capital, $80,000. The
other assets were sold for $139,000. Marilyn and Monroe share profits and losses in a 2:1 ratio. As a final cash
distribution from the liquidation, Marilyn will receive cash totalling
a. $46,000
b. $51,000
c. $60,000
d. $73 333
48. LIQUIDATION
Jimmy Jerry and Johnny decide to liquidate their partnership. All assets are sold and the liabilities are paid.
Followingthese transactions, the capital balances and profit and loss percentages are as follows: Jimmy, $27,000
and 30%; Jerry, $(12,000) and 40%; Johnny, $43,000 and 30%. Jerry is unable to contribute any assets to reduce
the deficit. How much cash will Jimmy receive as a results of the partnership liquidation?
a. $27,000
b. $21,000
c. $23,400
d. $15,000
49. LIQUIDATION
The remaining cash of a partnership (after creditors have been paid) upon liquidation is divided among partners
according to their
a. capital balances
b. contribution of assets
c. drawing balances
d. income sharing ratio
50. LIQUIDATION
A gain or loss on realization is divided among partners according to their
a. income sharing ratio
b. capital balances
c. drawing balances
d. contribution of assets
51. LIQUIDATION
A and B are partners who shareincome in the ratio of 3:2 and have capital balances of $50,000 and $90,000 at the
time they decide to terminate the partnership. After all noncash assets aresold and all liabilities are paid, there is
a cash balance of $90,000. How much cash should be distributed to A?
a. $50,000
b. $20,000
c. $30,000
d. $45,000
52. LIQUIDATION
X, Y, and Z arepartners, sharingincome1:2:3. After sellingall of the assets for cash,dividing losses on realization,
and paying liabilities, the balances in the capital accounts are as follows: X, $50,000 Cr.; Y, $40,000 Dr.; and Z,
$30,000 Cr. How much cash is available for distribution to the partners?
a. $120,000
b. $30,000
c. $40,000
12. d. $90,000
53. LIQUIDATION
X, Y, and Z arepartners, sharingincome1:2:3. After sellingall of the assets for cash,dividing losses on realization,
and paying liabilities, the balances in the capital accounts are as follows: X, $50,000 Cr.; Y, $40,000 Dr.; and Z,
$30,000 Cr. How much cash should be distributed to X assuming that Y pays the deficiency?
a. $50,000
b. $20,000
c. $30,000
d. $40,000
54. LIQUIDATION
X, Y, and Z arepartners, sharingincome1:2:3. After sellingall of the assets for cash,dividing losses on realization,
and paying liabilities, the balances in the capital accounts are as follows: X, $50,000 Cr.; Y, $20,000 Cr.; and Z,
$30,000 Dr. Assume that after the availablecash is distributed to the partners, Z pays $15,000 of the deficiency to
the firm. How much of the $15,000 should be distributed to X?
a. $15,000
b. $0
c. $5,000
d. $10,000
55. FORMATION (additional)
Jessica and Sienna want to put up an internet café business. Jessica is an expert in information technology and
computers but has no funds or property to invest. Sienna knows nothing about internet and computers but she is
willing to contribute the funds and property needed. If Jessica and Sienna decide to enter into a limited
partnership, who between the two of them will be the limited partner?
a. Jessica only.
b. Sienna only.
c. Both Jessica and Sienna.
d. Neither Jessica nor Sienna: hence, they cannot enter into a limited partnership.
56. FORMATION (additional)
These statements are presented to you:
I. A limited partner may also be general partner at the same time.
II. An industrial partner may also be a capitalist partner at the same time.
a. Both statements are true
b. Both statements are false.
c. Only statement I is true.
d. Only statement II is true.
57. PROFIT AND LOSS ALLOCATION (additional)
Sun and Moon are partners in a business. Sun’s original capital was 40,000 and Moon’s was 60,000. They agree to
salaries of 12,000 and 18,000 for Sun and Moon respectively and 10% interest on original capital. If they agree to
shareremainingprofits and losses on a 3:2 ratio,what will Sun’s share of the income (loss) be if the net loss for the
year was 10,000?
a. (12,600)
b. (14,000)
13. c. (6,000)
d. (10,000)
58. FORMATION (additional)
Resnel and Lana arecombiningtheir separatebusinesses to form a partnership.Cash and non-cash assets
are to be contributed for a total capital of P 600,000.The non-cash assets to be contributed and the liabilities to be
assumed are as follows.
Resnel Lana
Book Value Fair Market Value Book Value Fair Market Value
Accounts Receivable 40,000 40,000 - -
Merchandise Inventory 60,000 100,000 P 40,000P 50,000
Equipment 120,000 90,000 80,000 100,000
Accounts Payable 30,000 30,000 20,000 20,000
The partners’ capital accounts areto be equal after all the contributions of assets and the assumption of liabilities.
The amount of cash to be contributed by Resnel is
A P 200,000 C P 100,000
B P 300,000 D P 210,000
59. Using the information in item 39, the total assets of the partnership is
A P 630,000 C P 360,000
B P 650,000 D P 340,000
60. PROFIT AND LOSS ALLOCATION(additional)
The followingincomeand loss allocation method recognized the services rendered by the partners in terms of time
and skill as well as the contribution made by each partner, except:
A interest allowance to partners, balance in agreed ratio
B salary allowance to partners, balance in agreed ratio
C bonus allowance to partners, balance in agreed ratio
D equally
Enjoy your journey in reviewing accounting for partnerships!!
Reviewer for corporation will be uploaded later.
God Bless you all First accounting students!!
#CPAinTransit
xxxx nothing follows xxxxx
14. True or False
1. T
2. F
3. T
4. F
5. T
6. T
7. F
8. T
9. T
10. T
11. T
12. F
13. T
14. T
15. T
16. T
17. T
18. F
19. F
20. T
21. T
22. T
23. F
24. F
25. T
26. F
27. T
28. T
29. T
30. F
31. T
32. F
33. F
34. T
35. T
36. F
37. F
38. F
39. T
40. T
15. 41. T
42. T
43. T
44. F – 35 000
45. T
46. T
47. F – FAIRVALUE
48. T
49. F – TO CHANGE THE OWNERSHIP
50. F – P ANDL RATIO
51. T
52. T
53. F – LIQUIDATION
54. T
55. T
56. T
57. T
58. T
Multiple Choice
1. D
2. D
3. B
4. D
5. C
6. C
7. C
8. B
9. D
10. A
11. B
12. A
13. D
14. D
JACK JILL TOTAL
SALARIES 24 000 30 000 54 000
REMAININGBALANCE(2:1) ( 4 000) ( 2 000) ( 6 000)
NET INCOME 20 000 28 000 48 000
16. 15. D
16. D
17. B
18. D (AVAILABLEGIVEN ISASSET/CAPITALCONTRIBUTION)
19. D
20. D
21. B
22. C
FRED ETHEL TOTAL
BEGINNINGCAPITAL 42 000 58 000 100 000
NET INCOME (50%, 50%) 20 000 20 000 40 000
WITHDRAWAL (12 000) (17 000) (29 000)
ENDING CAPITAL 50 000 61 000 111 000
X Y TOTAL
INTEREST (10%) 5 000 10 000 15 000
SALARIES 27 000 18 000 45 000
REMAININGBALANCE(50%, 50%) 15 000 15 000 30 000
NET INCOME 47 000 43 000 90 000
X Y TOTAL
INTEREST (10%) 5 000 10 000 15 000
SALARIES 27 000 18 000 45 000
REMAININGBALANCE(50%, 50%) ( 5 000) ( 5 000) (10 000)
NET INCOME 27 000 23 000 50 000
X Y TOTAL
INTEREST (10%) 5 000 10 000 15 000
SALARIES 27 000 18 000 45 000
REMAININGBALANCE(50%, 50%) (35 000) (35 000) (70 000)
NET LOSS ( 3 000) ( 7 000) (10 000)
A B TOTAL
SALARIES - 60 000 60 000
REMAININGBALANCE(EQUALLY) 15 000 15 000 30 000
17. 23. A
24. C
25. D
26. B
27. A
28. D
29. A
NET INCOME 15 000 75 000 90 000
A B TOTAL
NET INCOME 15 000 75 000 90 000
ADDITIONALINVESTMENT - 10 000 10 000
WITHDRAWAL - (48 000) (48 000)
CHANGESIN CAPITAL 15 000 37 000 52 000
DENG DANG TOTAL
BEG, CAPITAL 40 000 60 000 100 000
INCOME ANDEXPENSE
SUMMARY
12 000 8 000 20 000
NET INCOME 52 000 68 000 120 000
OLD CAPITAL CONTRIBUTION CHANGES AGREED
NEW
CAPITAL
SALLY (OLD PARTNER) 120 000 (36 000) 84 000
SELMA (NEW PARTNER) - - 36 000 36 000
TOTAL 120 000 120 000 0 120 000
OLD CAPITAL CONTRIBUTION CHANGES AGREED
NEW
CAPITAL
PETER 40 000 (40 000) 0
PAUL 70 000 70 000
18. 30. D
31. D
32. B
33. C
34. B
35. D
36. B
37. B (IF C,IT IS NOT APPLICABLEON PURCHASINGPARTNER’SINTERESTIN PARTNERSHIP)
38. D
39. B
40. D
41. D
MARY - - 40 000 40 000
TOTAL 110 000 110 000 0 110 000
OLD CAPITAL CONTRIBUTION CHANGES AGREED
NEW
CAPITAL
A 50 000 (25 000) 25 000
B 30 000 30 000
X (NEWPARTNER) - - 25 000 25 000
TOTAL 80 000 80 000 0 80 000
OLD CAPITAL CONTRIBUTION CHANGES AGREED
NEW
CAPITAL
STAN 40 000 - 50 000
OLLIE 60 000 - 30 000
RAY (NEW PARTNER) - 0 50 000 50 000
TOTAL 100 000 100 000 50 000 150 000
19. 42. D
43. A
44. B
45. D
ASSET,DEBIT SIDE OWNERSHIP,CREDIT SIDE
46. D
47. A
OLD CAPITAL CONTRIBUTION CHANGES AGREED
NEW
CAPITAL
STAN 50 000 (8 000) 42 000
OLLIE 30 000 (12 000) 18 000
RAY (NEW PARTNER) - 20 000 20 000 40 000
TOTAL 80 000 100 000 0 100 000
CASH NON
CASH
LIABILITIES CAPITAL DESCRIPTION AND EXPLAINATION
A B PROFIT AND LOSS RATIO and
PARTNER’S NAME
110 000 0 0 40 000 70 000
(30 000) (10 000) (20 000) LOSS AFTER REALIZATION
80 000 30 000 50 000
(80 000) (30 000) (50 000) CASH DISTRIBUTION OF 80 000
0 0 0 0 0 xxx END OF LIQUIDATION xxx
CASH NON
CASH
LIABILITIES CAPITAL DESCRIPTION AND EXPLAINATION
MANILYN
(2/3)
MONROE
(1/3)
PROFIT AND LOSS RATIO and
PARTNER’S NAME
20 000 160 000 40 000 60 000 80 000
20. 48. B
49. D
50. A
51. A
52. C
ASSET (DEBITSIDE) = LIABILITIES+ CAPITAL(OWNERSHIP,CREDITSIDE)
ASSET,DEBIT SIDE OWNERSHIP,CREDIT SIDE
53. A
ASSET,DEBIT SIDE OWNERSHIP,CREDIT SIDE
139 000 (160 000) 0 (14 000) (7 000) LOSS AFTER REALIZATION
(139K -160K = -21K)
159 000 0 40 000 46 000 73 000
(40 000) - (40 000) PAYMENT OF LIABILITIES
119 000 - 0 46 000 73 000
(46 000) - - (46 000) - CASH DISTRIBUTION FOR MANILYN
(73 000) - - - (73 000) CASH DISTRIBUTION FOR MONROE
0 0 0 0 0 xxx END OF LIQUIDATION xxx
CASH NON
CASH
LIABILITIES CAPITAL DESCRIPTION AND EXPLAINATION
X (1/6) Y (2/6) Z (3/6) PROFIT AND LOSS RATIO and
PARTNER’S NAME
40 000 0 0 50 000 (40 000) 30 000
0 (10 000) 40 000 (30 000) DISTRIBUTION OF INSOLVENCY OF
PARTNER Y
40 000 40 000 0 0
(40 000) (40 000) CASH DISTRIBUTION OF 40 000
0 0 0 0 0 0 xxx END OF LIQUIDATION xxx
21. 54. C
ASSET,DEBIT SIDE OWNERSHIP,CREDIT SIDE
55. B
JESSICA ISAN INDUSTRIALPARTNERWHILE SIENNA IS A CAPITALISTPARTNER
SIENNA ONLYWILL BE LIMITED PARTNERBECAUSE SHE IS A CAPITALISTPARTNER.
CASH NON
CASH
LIABILITIES CAPITAL DESCRIPTION AND EXPLAINATION
X (1/6) Y (2/6) Z (3/6) PROFIT AND LOSS RATIO and
PARTNER’S NAME
40 000 0 0 50 000 (40 000) 30 000
40 000 40 000 INVESTMENT OF PARTNER Y
80 000 50 000 0 30 000
(80 000) (50 000) (30 000) CASH DISTRIBUTION OF 80 000
0 0 0 0 0 0 xxx END OF LIQUIDATION xxx
CASH NON
CASH
LIABILITIES CAPITAL DESCRIPTION AND EXPLAINATION
X (1/6) Y (2/6) Z (3/6) PROFIT AND LOSS RATIO and
PARTNER’S NAME
40 000 0 0 50 000 20 000 (30 000)
15 000 15 000 INVESTMENT OF PARTNER Z
55 000 50 000 20 000 (15 000)
0 (5 000) (10 000) 15 000 DISTRIBUTION OF INSOLVENCY OF
PARTNER Z
55 000 0 0 45 000 10 000 0
(15 000) (5 000) (10 000) CASH DISTRIBUTION OF 15 000
40 000 40 000 0
(40 000) (40 000) CASH DISTRIBUTION OF 40 000
0 0 xxx END OF LIQUIDATION xxx
22. 56. C
57. B
58. BONUS $ 270 000
59. B
Resnel Lana
Fair Market Value Fair Market Value TOTAL
CASH (SQUEEZE) 270 000 - 270 000
Accounts Receivable 40,000 - 40 000
Merchandise Inventory 100,000 50,000 150 000
Equipment 90,000 100,000 190 000
TOTAL ASSET 500 000 150 000 650 000
Accounts Payable ( 30,000) ( 20,000 ) ( 50 000)
TOTAL CAPITAL 470 000 130 000 600 000
60. A
INTEREST IS NOT APPLICABLE TO INDUSTRIAL PARTNERS BECAUSE THE COMPUTATIONFOR
INTEREST IS MULTIPLICATION OF INITIAL INVESTMENT,WHICH IT IS NOT PRESENT ON
INDUSTRIAL PARTNER, AND ASSIGNEDRATE.
xxx NOTHING FOLLOWS xxx
SUN MOON TOTAL
INTEREST (10%) 4 000 6 000 10 000
SALARIES 12 000 18 000 30 000
REMAININGBALANCE(3/5, 2/5) (30 000) (20 000) (50 000)
NET LOSS ( 14 000) 4 000 (10 000)