Plz solve In the absence of a partnership agreement, the profit between the partners is shared on the basis of:Drawings withdrawn by themExpenses incurred by themLosses incurred by themCapital contributed by them

Partnership deed is an agreement between the partners of a firm that outlines the terms and…

In the absence of a partnership agreement, the profit between the partners is shared on the basis c Drawings withdrawn by them Expenses incurred by them Losses incurred by them Capital contributed by them

In the absence of a partnership agreement, the profit between the partners is shared on the basis c Drawings withdrawn by them Expenses incurred by them Losses incurred by them Capital contributed by them

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter19: Accounting For Partnerships

Section: Chapter Questions

Problem 2MC

See similar textbooks

Related questions

Q: The withdrawal of a partner who receives assets with a value exceeding his capital balance results…

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

Q: Prior to the creation of a partnership, the sole proprietor must first re-evaluate or adjust its…

A: Re-evaluation or Adjustment in Assets or Liability: To determine whether or not there was a net gain…

Q: Non-cash assets invested into a partnership are recorded at O fair market value O net book value O…

A: Introduction: Assets that are not economic in nature. Non-cash properties are described here. These…

Q: If the partnership agreement only includes a provision on how to distribute losses, any partnersthip…

A: A partnership agreement is an interior business contract that outlines specific business practices…

Q: Bonuses to the old partners arise under each of the following circumstances, except: a. Agreed…

A: Bonus to the partners are the earnings for the partners earned due to some extraordinary situation.

Q: In the absence of Partnership deed, specify the rules relating to the following :(i) Sharing of…

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

Q: When a new partner is admitted to an existing partnership through the purchase of a portion of…

A: The Partnership is a written contract between two or more people to do business for earning profit.…

Q: If the partnership agreement only includes a provision on how to distribute profits, any partnership…

A: Partnership Agreement: Partnership agreements are internal business contracts that specify certain…

Q: In accounting for a withdrawal by payment from partnership assets, which statement is FALSE? O The…

A: Lets discuss the basics. Partnership is a agreement between two or more person who works together…

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: alaries provided to partners are generally accounted for as:________ a. Part of the cost of…

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

Q: Which of the following statements is correct? * Salaries to partners and interest on O partners'…

A: Salaries are expenses given to the partners for the running and efficiently managing the business.…

Q: If there is partnership deed, then which one of the following will apply? a. Partners are not…

A: Partnership deed is an agreement between the partners of the firm that states the terms and…

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: Explain the effect of dissolution on the authority and liability of the partners and the order in…

A: Partnership according to section 3 (1) of the partnership act 1961 is known as the relation between…

Q: Bonuses to the old partners arise under each of the following circumstances, except: a. Agreed…

A: A partnership seems to be a commercial entity composed of two or even more combined owner who have…

Q: Which of the following items is generally reported separately on a partnership return?

A: Step 1 A partnership is an arrangement by two or more individuals or parties to carry on the…

Q: martners sharing profits and loss in usiness. The assets were sold and I apital balances of the…

A: The calculation as, Let, A be Hello, B be Hai, C be Goodbye.

Q: Which is true regarding admission of a new partner accounted for under the bonus method? *…

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

Q: When the old partners receive a bonus upon admission of a new partner into a partnership, the bonus…

A: The question is related to Partnership Accounting.

Q: When a partner withdraws assets from a partnership that is considered as a permanent withdrawal, it…

A: Partnership is one of the form of business organisation under which two or more than two persons…

Q: The following partnership accounts represent a liability of a partner to the partnership, except *…

A: Receivable from partner is current assets for firm & liability of a partner to the partnership.…

Q: The share of loss of partners will appear: A. On the debit side of the profit and loss appropriation…

A: Loss indicates the excess of expenses over the income available for the appropriation account.

Q: Why are both non-taxable income and non-deductible expenses received and incurred at the partnership…

A: Non- Taxable Income-: Non-Taxable Income is any income that is exempted from being taxed by the laws…

Q: Refer to Problem 1: If Pete pays P4,200 for 4 of the interest of Tan, and the deficiency in the…

A: Partnership: A form of organization formed by legal agreement between two or more persons for…

Q: Partner’s interest in a partnership is generally equal to:

A: Partnership: A legal agreement between two or more persons to run a business and split the profits…

Q: Tax Drill - Effect of Partnership Operations on Basis Indicate whether the following items…

A: A partner basis in partnership firm is effected by following,it may either increase or decrease…

Q: The following cases on their own do not necessarily establish a partnership, except * Persons who…

A: In determining whether a partnership exists, the following rules shall apply: (1) persons who are…

Q: If a partner with a capital deficiency is unable to pay the amount owed to the partnership, the…

A: When a partner is unable to pay a capital shortfall due to insolvency, the other partners with…

Q: Under what circumstances can the closing of the income summary account result in a debit to one…

A: Solution: The closing of the income summary account result in a debit to one partners’ capital…

Q: absence of a Partnership Agreement, which of the following principles apply? A. Interest on…

Q: How does a newly formed partnership handle the contribution of previously depreciated assets?

A: A partnership is a form of business organization under which two or more than two join together to…

Q: If no agreement exists in a partnership as to the allocation of income, what method is appropriate?

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

Q: Vhen a partner invests noncash ssets in a partnership, the assets hould be recorded at their * O…

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

Q: What is the proper disposition of a partnership loan that was made from a partner who has a debit…

A: As per the liquidation of a partnership firm, if there is a partner who has the debit capital…

Q: In the liquidation of a partnership, a loan from a partner a. Will be paid off at the same time as…

A: Partnership characteristics includes: Existence of an agreement Existence of business Sharing of…

Q: What is the nature of liability of general partners as to partnership debts or obligations? A. the…

A: Exception limited liability partnership

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: Assume a partner withdraws from a partnership and receives assets of greater value than the book…

Q: Each partner's initial noncash investment in the partnership should be recorded at the a. carrying…

A: Answer: Option b Fair value of assets at the date of their transfer in to the business.

Q: Capital account

A: Each partner has a claim on partnership assets based on his/her. D. CAPITAL ACCOUNT.

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

A: Partnership is defined as the arrangement where the parties who agreed for cooperating in advance…

Q: 1. Which is a deductible expense in determining the net income of the partnership? * -Interest on…

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

Q: Any assets invested by a particular partner in a partnership ________.A. do not become a partnership…

A: Partnership is one of the form of business organisation. Under this two or more than two persons…

Q: If no agreement exists in a partnership as to the allocation of income, what method is appropriate?…

A: Partnership: It is a form of a business where two or more people come together to do business…

Q: A partnership agreement should include A. Provision for division of assets on dissolution B.…

A: Partnership agreement specifically prescribes how each and every aspect h it is to be dealt and…

Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Plz solve

In the absence of a partnership agreement, the profit between the partners is shared on the basis of:
Drawings withdrawn by them
Expenses incurred by them
Losses incurred by them
Capital contributed by them

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 is liquidated, any gains or losses realized by the sale of noncash assets are allocated to the partners based on their income sharing ratio. Why?
Which one of the following would not be considered in the development of a partnership agreement? A. profit and loss levels B. processing disputes C. stock options D. asset contributions
Any assets invested by a particular partner in a partnership ________. A. do not become a partnership asset but instead remain with the partner B. can be used only by the investing partner C. become the property of all the partners D. are the basis for all profit sharing
A well written partnership agreement should include each of the following except ________. A. how to settle disputes B. the name of the partnership C. division of responsibilities D. Partners individual tax rate
What is the purpose of a partnership appropriation account? A to avoid disagreements between the partners B to calculate residual profits for division between partners C to calculate the profit sharing ratio D to determine the amount of partners’ salaries
If the partnership operations result to net loss, which of the following distribution schemes is correct? -Allocate the salaries and interest but not the bonus -Allocate the salaries, interest and bonus as per partnership agreement -Agreement as to salaries, interest and bonus are disregarded, distribute only the loss -Allocate the salaries only but not interest and bonus PFRS 5 defines a "disposal group" (i.e., that will be disposed through sale) to include: -non-current assets and some directly associated liabilities -current assets, non-current assets and some directly associated liabilities -non-current assets only -current and non-current assets
In a partnership liquidation, a loss from sale of non cash assets is A.Allocated to the partner with the highest capital balance B.Allocated to the partnership liabilities C.Allocated to the partners based on their capital balances D.Allocated to the partners based on their profit and loss sharing ratio
If the total contributed capital of the partnership is greater than the total agreed capital, which of the following may arise: Undervaluation of Assets Goodwill Overvaluation of Assets All of the choices
If the total contributed capital of the partnership is greater than the total agreed capital, which of the following may arise: a.) Undervaluation of Assets b.) Goodwill c.) Overvaluation of Assets d.) All of the choices
If the partnership agreement only includes a provision on how to distribute profits, any partnership losses are: Divided based on the ratio of original capital account balances Divided using the same. manner of profit distribution Divided equally among the partners Not distributed among the partners
is it true or false? Explain Unless stated otherwise,in the partnership contract,profits and losses are shared among the partners in the ratio of their capital equity balances.
Partner’s interest in a partnership is generally equal to: a)The fair value of net assets at date of contribution. b)The sum of the fair values of the assets the partner contributes to the firm, increased by any liabilities of other partners assumed and decreased by any personal liabilities that are assumed by other partners. c)The sum of the bases of the individual assets the partner contributes to the firm decreased by the partner’s share of partnership liabilities. d)The unamortized cost of the assets to the partner.