Which among the following occasions does not contribute to reconstitution of the firm? Retirement of a deceased shareholder Admission of a new partner Death of a partner Retirement of an existing partner

Which among the following occasions does not contribute to reconstitution of the firm? Retirement of a deceased shareholder Admission of a new partner Death of a partner Retirement of an existing partner

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 14DQ

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Concept explainers

Real Estate

Real estate means ownership of land along with the assets and natural resources that exist on the land. These properties are in real/physical form which is tangible. Real estate simply means land or addition made to land permanently like constructing a residence or different buildings. People invest in real estate to either reside or for wealth creation. Many people investing in real estate further lend the place for occupation or businesses in return for a monthly payment.

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Which among the following occasions does not contribute to reconstitution of the firm?
Retirement of a deceased shareholder
Admission of a new partner
Death of a partner
Retirement of an existing partner

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What accounting steps are taken by a partnership firm when a new partner is unable to bring the business guaranteed by him?
In a partnership liquidation, if a partner has a debit capital balance in his or her capital account, he or she is responsible for contributing personal assets sufficient to eliminate the deficit. Group of answer choices True False
During a liquidation, if a partner’s capital account balance drops below zero, what Should Happen? The other partners file a legal suit against the partner with the deficit balance. The partner with the highest capital balance contributes sufficient assets to eliminate the deficit. The deficit balance is removed from the accounting records with only the remaining partners sharing in future gains and losses. The partner with a deficit contributes enough assets to offset the deficit balance.
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During liquidation, a partners’ capital account balance drops below zero. What should happen? a. The other partners should file a legal suit against the partner with the deficit balance. b. The partner with the highest capital balance should contribute sufficient assets to eliminate the deficit. c. The deficit balance should be removed from the accounting records with only the remaining partners sharing in future gains and losses. d. The partner with a deficit should contribute enough assets to offset the deficit balance.