Bonus to partners
Q: Which one of the following is a gain to the partnership firm? a. Interest on loan from bank b.…
A: Partnership firm is considered as a separate entry from its partnership. So even when interest on…
Q: 6. In partnership liquidation the first cash distribution should be made for A) partner capital B)…
A: Answer:- Partnership liquidation meaning:- Liquidation of partnership takes place when partners…
Q: Is there any situation wherein profit and loss ratio may be used as the basis of cash payments to…
A: Profit or loss of the company is measured by preparing income statement which shows the difference…
Q: From a partner's viewpoint, which of the following will have an unfavourable effect on the closing…
A: The current account is maintained, when the fixed capital account method is followed, under the…
Q: what are deemed cash contributions? what are deemed cash distribution? how do deemed
A: Deemed cash contributions: If a fund increasses in value for any non-investment related activity the…
Q: Guaranteed payments to partners go on what two lines of the Form 1065? What type of interest goes on…
A: A partnership is a form of business in which two or more than persons agree to carry common…
Q: How much was the bonus debited or credited in partner Bruce’s capital account? *
A: Under the bonus method for the admission of a partner into a partnership firm, the investment made…
Q: State two differences between interest on capital allowed to partners and interest on drawings…
A: The criteria of payment make capital’s interest and drawing’s interest different from each other.…
Q: All of the following forms part of the Appropriation Account EXCEPT: A. partners salary B. partners…
A: Partnership: It is the arrangement between two or more individuals to share profits of the business
Q: How much was the bonus debited or credited in partner Bruce’s capital account? SHOW ANSWER IN A GOOD…
A: A partnership is a form of business organization under which two or more than two person joins…
Q: Partners' withdrawals of assets are: O Credited to their withdrawals account. O Debited to their…
A: When the net assets are withdrawn, it will account for debit to withdrawal accounts.
Q: Recording a write-down from an original partner’s capital of book value to its implied fair market…
A: Write down of capital implies reduction in the capital funded by a partner to the firm in the…
Q: To compensate the partners for the difference in the capital contributions, this is incorporated in…
A: First option is wrong because salaries are paid to certain partners in addition to the share in…
Q: Which one of the following will be recorded under debit side of the partners' capital account? a.…
A: Solution- Items that may appear on the debit side of the Capital Account when the capitals are…
Q: Interest on capital
A: Which one of the following is a gain to the partners ? Correct Answer :- D Interest on Capital
Q: a) Which of the following is a financial instrument' as defined by MFRS 9? Give reasons for your…
A: Financial Instruments are contracts which include monetary transactions between different…
Q: Topic: Income Taxation Which of the following is considered a “constructive receipt” of gross…
A: Constructive receipt of gross income refers to situations where income can be used despite the…
Q: The drawing ledger accounts of limited liability partners are used: إختر أحد الخيارات: a. To reduce…
A: Partner's loan account is a separate account maintained in the books of partnership. It is created…
Q: The amount invested by the partners more than their existing capital is called: a. Additional…
A: The amount invested by the partners more than their existing capital is called Additional Capital…
Q: Statement I: Partners with the greatest ability to absorb losses and expenses are the first to…
A: A partnership is a kind of business structure in which two or more people agree to carry out…
Q: What is a summary of the changes in each partner's capital in a partnership that have occurred…
A: Financial statements: These imply to the written records that are maintained by the business related…
Q: Discuss the possibility for a post-closing debit balance in a partner’s capital account.
A: An help's obligations and commitment upon disintegration depict what the feat accomplice owes to the…
Q: Prepare the Profit and Loss Appropriation Account and Partners' Current Account.
A: Partnership: Partnership is a form of business organization in which two or more than two…
Q: 1. What entry is necessary to reflect interest payable on partner's drawings? a. Partner's…
A: 1. Interest on drawing is gain to partnership hence P&L appropriation should be credited and…
Q: Which one of the following item will be debited in profit and loss appropriation account? a.…
A: Interest On Capital ,Partners salary,Partners commission,partners bonus are debited to partners…
Q: The share of profit of partners will appear: a. On the credit side of the partners+IBk- capital…
A: Profit and loss account shows the total profit on the debit side. Profit and loss appropriation…
Q: What is a predistribution plan? Choose the correct.a. A list of the procedures to be performed…
A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…
Q: Partners' share of net income is recognized in the accounts through O a. Accrual entries O b.…
A: Partners Share of income: Before the share of income of partnership all the Accrual entries,…
Q: e closing balance of the current account of a partner?
A: The item (i) will make an unfavorable effect on the closing balance of the current account of a…
Q: (b) Assume the partnership income-sharing agreement calls for income to be divided with a salary of…
A: Most Important Note : 1) No interest on capital is allowed to partners if no interest is…
Q: . Describe how loans receivable from partners and loans payable to partners are treated in…
A: ANSWER Liquidation of a partnership means winding up the business usually by selling the assets,…
Q: The purpose of preparation of partners' capital account is: a. To know the balance of capital of…
A: Answer: Concept: The partnership firm is the firm which has two or more partners. They prepare…
Q: 21. The purpose of preparation of Profit and loss appropriation account is: a. To know the balance…
A: Answer - P&L Appropriation Account is basically prepared to show the appropriation or…
Q: Generally speaking, what events or activities would normally result in a partner’s capital account…
A: Partners’ Capital has a credit balance in normal. So, any credit will increase the partners’ capital…
Q: Which of the following statement is true regarding the admission of a new partner? a. New partner…
A: New partner can be admitted in to partnership business by the consent of all partners. Old partner…
Q: Accumulated Reserve on admission of a partner can be divided using? O a. New Profit Sharing Ratio b.…
A: In a partnership, two or more parties agree to operate and manage a business and share the profits…
Q: Guaranteed payments to partners go on what two lines of the form 1065? what type of interest goes on…
A: The two payments which are the guaranteed payments to partners which go on two lines of the form…
Q: The entry to distribute a loss to the partners * ODebit Income Summary account: Credit Partner's…
A: Partnership: It refers to a formal agreement between two or more partners, who agrees to run a…
Q: Which one of the following will not be recorded in profit and loss appropriation account? a.…
A: Profit and loss appropriation account includes the appropriation of profit and loss to the partners.…
Q: .A partner’s capital account is credited for the following transactions, except * -Share in net…
A: Solution: A partner’s capital account is credited for: 1. Share in net income 2. Original and…
Q: partnership records a partners' investment of assets in the business at the a. a value agreed by…
A: Partnership is an agreement between two or more than two persons in which they invest capital, run…
Q: Statement : Non-cash contributions of the partners should be recorded at agreed value in the absence…
A: Generally, associate interest coverage magnitude relation of a minimum of 2 (2) is taken into…
Q: Which of the following accounting adjustments are necessary when a partner retires? Calculation of…
A: When a partner retires, the following adjustments must be made: Adjustment of accumulated reserves…
Q: Which two methods are used to add cash to partners in an installment liquidation. A The schedule of…
A: Ans. In the event of liquidation, assets are sold and liability is settled. Partners contribution is…
Q: The withdrawal of capital by a partner from the business of partnership will be: a. Debited to…
A: Given are the capital and current balances
Q: The purpose of preparation of partners' capital account is: a. To know the balance of goodwill of…
A: The purpose of preparation of partners' capital account is: To know the balance of capital of…
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- Which one of the following item will be debited in profit and loss appropriation account? a. Interest on drawings b. Interest on deposits c. Bonus to partners d. Interest on loan *fast********9- Which one of the following item will be debited in profit and loss appropriation account? a. Interest on drawings b. Interest on loan c. Interest on deposits d. Bonus to partners1. What entry is necessary to reflect interest payable on partner's drawings? a. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Current (Cr.) c. Profit and Loss Appropriation (Dr.), Cash (Cr.) d. Profit and Loss Appropriation (Dr.), Partner's Capital (Cr.) 2. What entry is necessary to reflect interest earned on capital account balances? a. Partner's Drawings (Dr.), Partner's Current (Cr.) b. Profit and Loss Appropriation (Dr.), Partner's Drawings (Cr.) c. Partner's Drawings (Dr.), Interest Payable (Cr.) d. Partner's Current (Dr.), Profit and Loss Appropriation (Cr.) 3. A partner's personal gas receipts have been treated as part of the partnership's service vehicle expenses. Which of the following entries is necessary to correct the error? a. Drawings (Dr.), Service vehicle expense (Cr.) b. Service vehicle expense (Dr.), Drawings (Cr.) c. Service vehicle expense (Dr.), Capital…
- 18) Which one of the following will not be recorded in profit and loss appropriation account? a. Commission to partner b. Interest on capital c. Salary to partner d. Interest paid to bankWhich one of the following is a gain to the partners? a. Interest on loan from bank b. Withdrawal of capital c. Interest on drawings d. Interest on capitalDiscuss the possibility for a post-closing debit balance in a partner’s capital account.
- When accounts receivables are transferred into a partnership, at what amount should they be recorded? Include a definition of Accounts Receivable in your response.The purpose of preparation of partners' capital account is: a. To know the balance of capital of each partner b. To know the balance of goodwill of each partner c. To know the balance of drawings of each partner d. To know the interest on loan of each partnerRecording a write-down from an original partner’s capital of book value to its implied fair market value would involve a debit to which account: a. Drawing b. Cash c. Capital d. Revenue
- Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. InvestmentA statement of changes in partners' equity should Include all of the following except a. Beginning capital balances. b. Investments during the period. c. Partner's payments of loans. d. Withdrawals during the period. e. Ending capital balances. f. Share of profit for the period.Required: preparea. Revaluation account b. Goodwill account c. Retiring partner's (Inie) account