cash payments to partners of a partnership in liquidation are delayed until all noncash assets have been realized, any cash remaining after all partnership creditors have been paid is distributed a. In the ratio for sharing net income and losses b. According to the liquidator’s best judgment c. In amounts equal to the partners’ loan and capital account balances d. In some other manner
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. cash payments to partners of a partnership in liquidation are delayed until all noncash assets have been realized, any cash remaining after all partnership creditors have been paid is distributed
a. In the ratio for sharing net income and losses
b. According to the liquidator’s best judgment
c. In amounts equal to the partners’ loan and capital account balances
d. In some other manner
2. A joint arrangement in which the assets and liabilities relating to the arrangement are held in a separate vehicle can be:
a. Neither joint venture nor joint operation
b. Joint operation
c. Joint venture
d. Either joint venture or joint operation
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