A partnership liquidation occurs when a. the assets are sold, liabilities paid, and business operations terminated O b. the ownership interest of one partner is sold to a new partner C. a new partner is admitted d a partnr dion

A partnership liquidation occurs when a. the assets are sold, liabilities paid, and business operations terminated O b. the ownership interest of one partner is sold to a new partner C. a new partner is admitted d a partnr dion

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3PA: When a partnership is liquidated, any gains or losses realized by the sale of noncash assets are...

See similar textbooks

Related questions

Q: ) When the net assets of the partnership are fairly valued and the amount invested by the incoming…

A: solution note : as per the Q&A guideline we are required to answer the first question only .…

Q: Prepare a statement of partnership liquidation and the entries to record the following: 1. Sale of…

A: Partnership Liquidation:-It is the process in which assets get sold out, liabilities get paid off…

Q: Which of the following statements regarding partnership is incorrect? a. Changes in the…

A: Solution: The incorrect statement regarding partnership is "A partnership has a separate legal…

Q: Discuss when a limited partner does or does not have the following rights or powers: (a) to assign…

A: A partnership is the form of a business organization, in which two or more people start an…

Q: 1 In preparing closing entries of the partnership,- a) all nominal accounts are reduced to zero…

A: closing the entry of the partnership following steps are taken all the income account are closed in…

Q: In the installment liquidation of a partnership, each installment of cash is distributed: a) As if…

A: Liquidation of Partnership Firm: To dissolve a partnership firm is to stop doing business as that…

Q: a. What is the partnership's and each partner's gain or loss recognized on the formation of the…

A: A partnership is a firm where 2 or more individuals run a firm by being a partner in it. All the…

Q: A partner who retires voluntarily from the partnership is not entitled to profit share for that…

A: Partnership is a group of people who come together for earning the profit by commencing the…

Q: Closing entries of a partnership include entries to

A: The answer for the multiple choice question and relevant explanation are presented hereunder :…

Q: IDENTIFICATION: Another term for liquidation by total. A partner whose capital account balance is…

A: The question is related to Partnership Accounting. It deals with the identification.

Q: Prepare a Statement of Partnership Liquidation and the entries to record the following: 1. Sale of…

A: Partnership liquidation Statement: It is a statement showing the closure of capital A/Cs of partners…

Q: S1: In a partnership liquidation, if a partner’s personal liabilities exceed personal assets then…

A: Partnership means where two or more person comes together to do some common business activity and…

Q: 1. S1: The personal assets of the partners are used first to settle their personal obligations…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: On Dissolution of a partnership firm, the claims of the partners on their capital will be listed for…

A: Answer

Q: Part B: Prepare a final statement of partnership liquidation. Complete this question by entering…

A: A business combination is the union of the small business units into one. The new combined unit is…

Q: A series of payments made to partners during partnership liquidation is called a continuous…

A: Installment liquidation involves the selling of some assets, paying the liabilities of the…

Q: is a change in the partnership which is caused by a partner ceasing to be associated in the carrying…

A: Partnership is a process in which two or more people work together for earning profits while…

Q: 1. When a property other than Cash is invested in a partnership, at what amount should the noncash…

A: In the light of provisions of Partnership Act, When a property other than Cash is invested in a…

Q: Bonuses to the old partners arise under each of the following circumstances, except: a. Agreed…

A: A partnership seems to be a commercial entity composed of two or even more combined owner who have…

Q: Partners J, Y, and P share profits and losses in 5:3:2 ratio, respectively. J wishes to leave the…

A: Retirement of a Partner of Partnership Firm: In the event of a partner's retirement, the partnership…

Q: Partnership dissolution can be in the following ways except? Select one: a. Wish of any partner…

A: There are two types Dissolution of partnership and dissolution of firm Dissolution of partnership…

Q: no need to explain 1 - A partnership is always liquidated when its term is terminated. 2 - A…

A: In the given case option Both are True is the correct statement.....

Q: newly formed partnership handles the contribution of previously depreciated assets by continuing the…

A: Change of life of assets does not affect by the change of partnership. The assets that is taken by…

Q: Which of the following procedures is not necessary in effecting a dissolution? Revising the…

A: Dissolution of partnership is a method of terminating the partnership agreement. In this process,…

Q: A person entoring into a partnership is only liable for debts or eligible for profits from the date…

A: Partnership is one of the agreement between two or more than two persons in which they invest their…

Q: S1: In a partnership liquidation, if a partner's personal liabilities exceed personal assets then…

A: Partnership means where two or more person comes together to do some common business activity and…

Q: Required; Prepare a statement of partnership liquidation and the entries to record the following: 1.…

A: Partnership refers to an agreement between 1 or more people to operate a business together and share…

Q: The process of winding up business operations which includes realization and payment of claims…

A: Plese note that as per bartleby honor code we are supposed to answer the first 4 sub queston only.…

Q: Which of the following is added to the Partner's capital account in the Statement of Changes in…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: 11. The following are indications of partnership dissolution except: A.Two or more sold…

Q: If a new partner acquires partnership interest directly from the partners rather than from the…

A: when a new partner is admitted the existing partners’ capital accounts are reduced and the new…

Q: Which of the following is true about a partnership? The old partnership ends only upon the…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: Statement I: If a partner withdraws from the partnership, the partnership must liquidate the…

A: Partnership is an agreement by which two or more person work together to share the profits earned by…

Q: After the distribution of cash to partners in a partnership liquidation, the business would have…

A: Liquidation can be simply interpreted as a process of bringing the business into its end and…

Q: What is a partnership dissolution? Does dissolution automatically necessitate the cessation of…

A: Partnership: It is an agreement between two or more individuals who agree to form a business and…

Q: Answer if TRUE or FALSE. If the statement is FALSE provide at least a brief explanation why it's…

A: Partnership agreement: It is an agreement where business practices for the partners of a company…

Q: Instruction: Write "T" if the statement is correct and "F" if incorrect. 1. When a new partner is…

A: 1) True, when a new partner is admitted then the old partnership deed is automatically and a new…

Q: Which of the following is not a part of the winding up process? Group of answer choices Discharge…

A: The correct answer is the third option that is, closing the partnership's business as it is not a…

Q: 21. When 'a bonus is given to the new partner, part of the entry to record the admission of new…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: It is a change in the partnership which is caused by a partner ceasing to be associated in the…

A: The business can be conducted in many forms of organization. It can be run on sole proprietorship…

Q: n accounting for partnership dissolution Statement I: If a partner withdraws from the partnership,…

A: when there is agreement between two person to share profit and losses among them in agreed ratio and…

Q: According to the RUPA, a new partner is admitted to a partnership if a majority of the partners…

A: According to partner ship act 1932,A partner can admitted only with the consent of all partners…

Q: A, B and C are general partners in ABC partnership. X is a debtor to the partnership in the amount…

A: The question is related to Partnership Accounting. The details are given regarding the same.

Q: 16. How much is the balance of M's capital account after O's admission? а. Р 191,600.7о b. P…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Question

A partnership liquidation occurs when
O a. the assets are sold, liabilities paid, and business operations terminated
O b. the ownership interest of one partner is sold to a new partner
O c. a new partner is admitted
O d. a partner dies

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What is the first step in a partnership liquidation (termination and sale of assets)?
When a partnership liquidates, do partners get paid first or do creditors get paid first?
Prior to proceeding with the liquidation, the partnership should ________. A. prepare adjusting entries without closing B. complete the accounting cycle for final operational period C. prepare only closing entries D. complete financial statements only
When a partnership is liquidated, any gains or losses realized by the sale of noncash assets are allocated to the partners based on their income sharing ratio. Why?
A partnership ________. A. has one owner B. can issue stock C. pays taxes on partnership income D. can have more than one general partner
How does a newly formed partnership handle the contribution of previously depreciated assets? A. continues the depreciation life as if the owner had not changed B. starts over, using the contributed value as the new cost basis C. shortens the useful life of the asset per the partnership agreement D. does not depreciate the contributed asset