In partnership liquidation the first cash distribution should be made forSelect one:a. loan to bankb. partner capitalc. loan to partnerd. Liquidation expenses000

Loan to bank is a Firm's outside liability, therefore, first cash distribution is payment of loan to…

Answered: In partnership liquidation the first…

Business

Accounting

In partnership liquidation the first cash distribution should be made for

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 15MC: When a partnership dissolves, the first step in the dissolution process is to ________. A. allocate...

See similar textbooks

Related questions

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: In the liquidation of a partnership, a loan payable to a partner: a) May be offset against that…

A: Liquidation: In liquidation of partnership assets are liquidated. After assets, the liquidation…

Q: Claims against partners personal assets by creditors if the partnership can't pay its debts refers…

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

Q: The partnership profit is divided in proportion to each partner's capital equity interest, unless…

A: The partnership profit is divided in proportion to each partner's capital equity interest, unless…

Q: The accounting treatment for the sale of the interest of the retiring partner to an outsider or…

A: Retirement occurs when a partner's entire interest is liquidated, and payment, therefore, is made…

Q: no need to explain. What is a cash priority program? a. A guideline for the cash distributions made…

A: At the time of liquidation of partnership business, there are some procedural steps that need to be…

Q: the assets of the partnership shall be applied lastly to

A: Liquidation of partnership firm takes place while turning down the business of the firm which…

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: e causes of partnership liquidation? e types of liquidation? Differentiate one from the ofher. e…

A: Liquidate implies a legal closing down by a liquidator however it happens when there are still…

Q: Which of the following statements is correct? Options: Each partner has the authority to enter…

A: The partnership is the business form that is owned ad controlled by two or more partners. When the…

Q: How does a partnership prepare financial reporting?

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Q: What value should be assigned to non-cash assets transferred by one of the partners to the…

A: Partnership: It is the collaboration of two or more people to carry out a commercial venture to…

Q: How are debts of firm and private debts dealt with in case of dissolution of partnership firm and…

A: Treatment of Firms Debt and Private Debts at the time of dissolution of partnership firm: Firm’s…

Q: What are the steps in dissolution process of the partnership.

A: A partnership can be easily dissolved by complying with all the relevant laws rules and regulations…

Q: In a partnership liquidation, the final cash distribution to the partners should be made in…

A: Partnership: It can be defined as an agreement whereby two or more persons agree to conduct a…

Q: If an individual were to acquire an interest in a partnership from the partnership entity itself,…

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: Accounting - Partnership Does unlimited liability of a partner for partnership debt an advantage…

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

Q: A partnership agreement most likely will stipulate that assets be reappraised when A That…

A: solution concept The asset and liabilities of the partnership firm are generally restated or say…

Q: How are safe capital balances computed when preliminary distributions of cash are to be made in a…

A: Definition: Partnership: This is the form of business entity that is formed by an agreement, owned…

Q: In investment in partnership, the payment made by new partner is A Paid to the partnership B) Paid…

A: The partnership is a business firm, where two or more persons do the business and earn the profits…

Q: Is a true or false question: 1) During a partnership liquidation, if a partner has a debit capital…

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

Q: An incoming partner may acquire an interest in the partnership for a price in excess of that…

A: Introduction: Partnership: Its an agreement between two or more members for forming a business with…

Q: The first step in the liquidation of a partnership is to * allocate a gain or loss on realization to…

A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and…

Q: A partnership agreement may NOT include O the method of allocating profits and losses the purpose of…

A: A partnership is an agreement between two or more partners where partners are agreed to work…

Q: What are the steps involved in a partnership liquidation?

A: Solution: Introduction: A liquidation of a partnership process often starts with realization of non…

Q: How do loans from partners affect the distribution of assets in a partnership liquidation?

A: Partnership: This is the form of business entity which is formed by an agreement, owned and managed…

Q: 1. In a partnership liquidation the realization losses result in a debit balance in one partners’…

A: Hi student Since there are multiple questions, we will answer onky first question.

Q: After realization and payment of external debt, how much cash would the partnership have left for…

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: Attempt of the following: a. Revenue vs capital expenditure b. Accelerated depreciation method c.…

A: Expenditure: It is the amount spends and liability incurred for purchase assets, goods, and…

Q: In a partnership liquidation, a gain from sale of assets is credited to the A. partner with the…

A: In liquidation, the assets are realized for paying the amount of liability, claim and the capital…

Q: There is a liquidation of assets of a partnership. Describe the order in which assets must be…

A: Introduction: Liquidation is the process of selling all of an entity's assets, trying to settle its…

Q: represent the residual equity of the partnership business.

A: A partnership business is the form of business, where two or more parties enter into an agreement to…

Q: rship Liquid

A: The statement of partnership liquidation is given as,

Q: What valuation should be recorded for noncash assets transferred to a partnership by one of the…

A: Partnership is the combination of two or more persons to do some business for earning profit. At the…

Q: What information do the capital accounts found in partnership accounting convey?

A: People start their own business and select the form of organisation depend upon their need and kind…

Q: A partnership liquidation occurs when a. the assets are sold, liabilities paid, and business…

A: The partnership firm can continue to exist after retirement, admission or death of a partner.

Q: What is the meaning of the statement below? Please explain. In the partnership agreement, interest…

A: Liquidation process: All partners decided to end the partnership and distribute the assets after the…

Q: Why is it important to state all partnership assets in terms of current prices at the time of the…

A: Partnership: It is a form of an organization which is owned and managed by two or more persons who…

Q: In partnership liquidation, which of the following statements is correct? * O Only cash can be…

A: The question is related to Partnership Accounting. In case of liquidation of Partnership, the loss…

Q: In a partnership, distinguish between the goodwill and bonus methods

A: Partnership: It is a form of business where two or more persons are joined together to conduct the…

Q: When accounts receivables are transferred into a partnership, at what amount should they be…

A: Accounts receivable is the amount of money due to an entity for goods or services provided or used…

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: How is a predistribution plan created for a partnership liquidation?

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Q: n a partnership liquidation, if a partner has a debit capital balance in his or her capital account,…

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

Question

In partnership liquidation the first cash distribution should be made for
Select one:
a. loan to bank
b. partner capital
c. loan to partner
d. Liquidation expenses
000

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

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

When a partnership dissolves, the first step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partners
When a partnership dissolves, the last step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partners
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
The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a $7,000 salary and Sue receives a $6,500 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $10,000 B. $5,000 C. ($12,000) In addition, show the resulting entries to each partners capital account.
The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after Tatum receives a 10,000 salary and Brook receives a 15,000 salary. Prepare a schedule showing how the profit and loss should be divided, assuming the profit or loss for the year is: A. $40,000 B. $25,000 C. ($5,000) In addition, show the resulting entries to each partners capital account. Tatums capital account balance is $50,000 and Brooks is $60,000.
What is the first step in a partnership liquidation (termination and sale of assets)?