Distinguish between the liability of incoming partner for debts arising before his admission and those arising after admission.
Distinguish between the liability of incoming partner for debts arising before his admission and those arising after admission.
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter23: Accounting For Partnerships
Section23.1: Forming A Partnership
Problem 2AYU
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Distinguish between the liability of incoming partner for debts arising before his admission and those arising after admission.
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Step 1
A partnership is a legally enforceable agreement between two or more people to manage and operate a business while sharing profits. Partnerships can come in a variety of shapes and sizes. In a partnership, for example, partners share equal liability and earnings, although in other organisations, partners may have limited liability. There's also the "invisible partner," who isn't involved in the company's day-to-day operations.
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