After all partnership assets have been converted to cash and all liabilities paid, the remaining cash should equal the sum of the balances of the partners’ capital accounts. Why?
After all partnership assets have been converted to cash and all liabilities paid, the remaining cash should equal the sum of the balances of the partners’ capital accounts. Why?
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3Q: Can a partnership assume liabilities as part of one of the partners contributions?
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Question
After all partnership assets have been converted to cash and
all liabilities paid, the remaining cash should equal the sum
of the balances of the partners’ capital accounts. Why?
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