Interest on capital
Q: b. Calculate the ending capital balances for all four partners a
A: Solution:- Admission of new partner means taking in new partners. The new partners bring in…
Q: If total contributed capital is equal to total agreed capital with the new partner's investment is…
A: Partnership characteristics includes: Sharing of profits and losses Mutual agency Unlimited…
Q: How much is the capital of Adee upon partnership formation?
A: When there is any change in the composition of the partnership the assets and liabilities are…
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: . For the risk-return principle implies that the riskier a given course of action, the higher the…
A: The question is related to true or false. The expected returns are subject to risk. Since you have…
Q: The total contributed capital consists of the following Investment of both the new and the old…
A: The balance sheet represents the financial position of the business with assets, liabilities and…
Q: profit or loss
A: .To compensate the partners for the difference in capital contributions, they may include which of…
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A: When the net assets are withdrawn, it will account for debit to withdrawal accounts.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: Show the journal entry to record the initial capital investment made by a partner.
A: Partnership: It is a form of business where two or more individuals come together and carry out…
Q: On Dissolution of a partnership firm, the claims of the partners on their capital will be listed for…
A: Answer
Q: When there is a capital deficiecy, the effect is that a. the cash and other assets will also be…
A: Ans. Whenever there happens a case of capital deficiency, the assets are less as compared to the…
Q: A partner's withdrawal of assets from a LLP that is considered a permanent reduction in that…
A: Limited liability partnership (LLP) refers to a partnership wherein a few or all partners (depending…
Q: How does a proportionate current distribution of cash from a partnership to a partner compare with…
A: SOLUTION- A cash dividend is the distribution of funds or money paid to stockholders generally as…
Q: Which is NOT CORRECT when the Capital Adjustment account is used in the recording of partnership…
A: the capital account of partner according to the adjustment to the capital account shall be increased…
Q: Which of the following statements about paid-in capital is correct? a) Shows the capital amounts…
A: Paid-in capital refers to the total amount of capital contributed by the owners of the entity in the…
Q: How should losses in a partnership be divided between the capitalist partners? The ranking should…
A: Partnership is an agreement between persons, who invest their money, run business and then share…
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: 1. What is an intercorporate share investments? a) Significance Influence b) Financial Assets vs…
A: Investments are the resources that the entity or individual has when capital is allocated for a…
Q: amount invested by the partners more than their existing capital is called: a. Drawings b.…
A: Option B is correct... The amount invested by the partners more than their existing capital is…
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: . The amount invested by the partners more than their existing capital is called: a. Drawings b.…
A: Drawings are nothing but the amount withdrawn by partners from their firm Interest charged on amount…
Q: After liquidating all property and paying partnership obligations, what is the basis for allocating…
A: Partnership: A partnership is an unincorporated form of business which is formed by an agreement,…
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: 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: The two methods by which the capital accounts of partners can be maintained are: Fluctuating Capital…
A: The partners of a firm maintain accounts for the record of their capitals, salaries, interests and…
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: 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: What is the definition of Working Capital? Options: A) They are the resources contributed by the…
A: Answer - Working Capital is calculated as current assets minus current liabilities and it is…
Q: The use of average capital in distributing profits and losses results in equitable distribution…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: tion of partnership assets?
A: Sheen will receive 33333 and Carl Receive 26667 at the time of Dissolution of partnership firm
Q: - The share of loss of partners will appear: a. On the credit side of the partners+IBk- capital…
A: Solution: Loss means debit balance of profit and loss appropriation account, once loss is…
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: how would the increase in liabilities of other partners assumed would contribute to the partner's…
A: Partner interest in the partnership business is the percentage which a partner owns in the…
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: f it is required to maintain fixed capitals, then the partners' shares of profits must be Debited to…
A: Partners Fixed Capital Account is where capital related transactions are recorded. Initial…
Q: Which one of the following is a gain to the partnership firm? a. Interest on drawings b.
A: Solution: "Interest on drawings" is a gain to the partnership firm.
Q: 38. What is A's capital balance after the admission of C? 39. What is the total partnership capital…
A: As per our protocol we provide solution to the one question only but as you have asked multiple…
Q: If a firm is maintaining both capital accounts and current accounts of the partners A and B.…
A: Partners capital account is the account were partners capital contribution are recorded. Partners…
Q: he profit or loss on realization is transferred to partners' capital accounts in their: Sacrificing…
A: REALIZATION PROFIT OR REALIZATION LOSS ARE TRANSFERRED TO THE PARTNER'S CAPITAL ACCOUNT IN THEIR…
Q: True or False The Statement of partners' capital takes the place of the Capital statement of a sole…
A: The final account of the partnership firm includes statements of partners capital to report the…
Q: Which situation is the most challenging in capital allocation to partners?
A: Which situation is the most challenging in capital allocation to partners? Capital allocation is…
Q: Losses are first met out of what on dissolution: O a. Out of private assets of partners O b. Out of…
A: Partnership means where two or more person comes together to do some common business activity and…
Q: Which one of the following is a gain to the partnership firm? a. Withdrawal of capital b. Interest…
A: Solution: "Interest on drawings" Interest on drawings. This is because drawing are withdrawn by the…
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- Which one of the following is a gain to the partnership firm? a. Interest on loan from bank b. Interest on capital c. Withdrawal of capital d. Interest on drawingsThe amount invested by the partners more than their existing capital is called: a. Additional capital b. Interest on capital c. Interest on drawings d. DrawingsRecording 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
- 6. Which one of the following is a gain to the partnership firm? a.Interest on drawings b.Interest on capital c.Interest on loan from bank d.Withdrawal of capitalWhich one of the following item will be debited in profit and loss appropriation account? a. Interest on loan b. Interest on drawings c. Interest on deposits d. Bonus to partnersHow should losses in a partnership be divided between the capitalist partners? The ranking should be: a. agreement-profit and loss -capital b. capital-agreement-profit and loss ratio c. agreement-profit ratio-capital d. profit and loss-capital-agreement.
- Show the solution in good accounting form. How much is the capital of Adee upon partnership formation?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 partnerA 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.