1) A partner may withdraw or retire from the partnership by A. selling his interest to an outsider B.payment of his interest from partnership funds C. selling his interest to one or more of the remaining partners D. any of the above
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
1) A partner may withdraw or retire from the partnership by
A. selling his interest to an outsider
B.payment of his interest from partnership funds
C. selling his interest to one or more of the remaining partners
D. any of the above
2) X retired from the partnership of X, Y and Z. X received an amount in excess of his capital balance in settlement of his equity. All assets of the partnership are fairly valued. Under these circumstances,
A. the partnership shall recognize goodwill
B. the partnership shall recognize an expense
C. the capital balances of Y and Z would decrease
D. the capital balances of Y and Z would not be affected
3) A partner may withdraw or retire from the partnership by
A. selling his interest to an outsider
B. payment of his interest from partnership funds
C. selling his interest to one or more of the remaining partners
D. any of the above
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
