A Ooredoo l.A sct.edu.omP Flag questionWhich of the followingadjustments are NOT to bedone at the time of retirementof a partner?a. Preparation ofExecutors account incase of death of apartnerb. Accounting treatmentof goodwill to be madec. Reserves and profits tobe adjustedd. New profit sharing ratioof remaining partners.The correct answer is:Reserves and profits to beadjustedII

Partnership is the business owned and controlled by one or more partners for sharing the profits and…

Answered: Which of the following adjustments are…

Business

Accounting

Which of the following adjustments are NOT to be done at the time of retirement of a partner?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2MC: Any assets invested by a particular partner in a partnership ________. A. do not become a...

See similar textbooks

Related questions

Q: From a partner's viewpoint, which of the following will have an unfavourable effect on the closing…

Q: An entry is not required in the liquidation of a partnership to recor the

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

Q: 51. The sale of interest of the retiring partner to the remaining partner will.require recognition…

Q: When a partner retires from the partnership and the settlement of his interest exceeded his capital…

A: In Partnership two or more persons come together to carry on a business and share the profit and…

Q: A partner who retires voluntarily from the partnership is not entitled to profit share for that…

A: Partnership is a group of people who come together for earning the profit by commencing the…

Q: Which of the following methods are used to calculate the estimated profit up to the date of death of…

A: When a partner dies in partnership firm , his heirs are entitled to the amount due and the rights…

Q: What is the difference between the dissolution of a partnership and the liquidation of partnership…

A: Liquidation of partnership: Liquidation of partnership is the process of selling all the…

Q: Which of the following, if unpaid, is to be accrued? O Cash dividends O Service-type warranties O…

A: Solution: "Bonus to employees and partners of a partnership" is to accrued if unpaid.

Q: Which of the following is not a close member of the family of a person in accordance to PAS 24?…

A: PAS 24 Deals with : Related Party Disclosures This requires necessary disclosures relevant to any…

Q: he legal representatives of the deceased partner are entitled to receive: O a. May receive notice to…

A: Partnership is an agreement between two or more persons in which they invest capital, run business…

Q: There is no impact on the statement of comprehensive income of a partnership when a partner…

A: The drawings are the cash or assets withdrawn by the owner or partner for his personal use. The…

Q: is a change in the partnership which is caused by a partner ceasing to be associated in the carrying…

A: Partnership is a process in which two or more people work together for earning profits while…

Q: Which of the following statement is valid in relation to sacrifice ratio? It is prepared at the time…

A: The sacrifice ratio is the ratio in which old partners sacrifice their share of profits to the new…

Q: Due to which circumstances the existing partner may decide to retire from the firm? O a. Old age O…

A: The question is related to Partnership. Due to which circumstances the existing partner may decide…

Q: e. What is Matt's ending basis in his partnership interest? Ending basis

A: Partnership :- When two or more persons come together to form a business and share Profit and losses…

Q: What are the different ways in which a partner can retire from the firm.

A: Partner is a person who is in partnership with a view to do business together. Group of partners is…

Q: Which of the following is true about the partnership's allocation of loss?

A: As per our protocol we provide solution to the one question only but as you have asked two questions…

Q: What journal entry is passed when a partner agrees to pay the realization expenses on the behalf of…

A: Realization account: A realization account is prepared at the time of dissolution of a firm. The…

Q: If a partnership contract does not state the period of time the partnership is to exist, when does…

A: Partnership deed is a written declaration of agreement among the partners specifying rules and…

Q: 1. In the absence of an agreement, the legal representative of a deceased partner is entitled to an…

A: Partnership refers to the formal agreement between two or more person who are agreed to carry out…

Q: According to the Uniform Partnership Act, what events should occur if a partner incurs a negative…

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

Q: Partnership dissolution can be in the following ways except? Select one: a. Wish of any partner…

A: There are two types Dissolution of partnership and dissolution of firm Dissolution of partnership…

Q: Write the various matters that need adjustments at the time of retirementof a partners.

A: When one or more partners of a firm leaves the firm and the remaining partners continue the…

Q: Under which of the following circumstances would a partnership terminate and close its

A: partnership is when more than one person form organisation and shares equal responsibility among…

Q: Determine the ending capital balance of partner C after the retirement of partner A.

A: the interest in the partnership of C is different from the interest in profit & loss of the…

Q: Which of the following procedures is not necessary in effecting a dissolution? Revising the…

A: Dissolution of partnership is a method of terminating the partnership agreement. In this process,…

Q: A partner's interest in a partnership is decreased by

A: Partner's basis in partnership interest means the basis of the contributed property by a partner.…

Q: When a partner withdraws from a partnership, why is the final distribution often based on the…

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

Q: Why would the members of a partnership elect to terminate business operations and liquidate all…

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

Q: e closing balance of the current account of a partner?

A: The item (i) will make an unfavorable effect on the closing balance of the current account of a…

Q: If the amount due to a retiring partner is not paid off immediately, then that amount will be…

A: Partnership is an agreement between two or more persons in which they invest capital, run business…

Q: Distinguish between the liability of incoming partner for debts arising before his admission and…

A: A partnership is a legally enforceable agreement between two or more people to manage and operate a…

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

A: The retirement of the partner means the partner that is leaving the partnership. The partner can…

Q: In the liquidation of a partnership, why might a partner be concerned that a fellow partner has a…

A: Given: The elimination of deficit net capital balance of fellow partners.

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: If a partner who retired from the partnership receives less than the capital balance before…

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

Q: Why might a partnership pay a bonus to a newly admitted partner?

A: Partnership: A partnership is a firm structure whereby multiple people own the firm together. These…

Q: Partners are taxed on their withdrawals, not on their share of partnership income. True or False

A: A partnership is a form of business in which two or more two individuals agree to operate a…

Q: The profit and loss from revaluation on retirement of partner is shared by? O a. All the partners O…

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

Q: If a partner who retired from the partnership receives less than the capital balance before…

A: Revaluation/impairment of asset need to be done ,so fair settlement take place.

Q: Which of the following accounting adjustments are necessary when a partner retires? Calculation of…

A: When a partner retires, the following adjustments must be made: Adjustment of accumulated reserves…

Q: Prepare journal entries to record the withdrawal of a current partner.

A: A current partner can withdraw from the partnership, and his or her current interest can be sold to…

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: Which one of the following alternatives is correct? A. The retirement of a partner from a…

A: Partnership refers to the one where two or more individuals join hands to operate a business…

Q: While death of a partner is a cause of partnership dissolution, a partner's incapacity to perform is…

A: The Dissolution refers to the end of a partnership’s existing relationship. When a partnership…

Q: When a partner sells an ownership interest in a partnership, what rights are conveyed to the new…

A: Partnership: A partnership is an unincorporated form of business which is formed by an agreement,…

Q: O When a partner withdraws, the

A: Correct Answer :- C When a partner withdraw, the company books must be closed and a new set of…

Question

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

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
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?
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
Statement I: When a Partnership's operations resulted to a net loss, a partner who contributed legal services, shall have share of loss in accordance to the losses agreement. However, if there is no losses agreement, he shall not be liable to any loss.Statement II: All withdrawals and investments shall be considered when computing for the weighted average capital balance. Group of answer choices S1 is true; S2 is false Both statements are true S1 is false; S2 is true Both statements are false
In case of admission of a partner, the first adjustment that need to be prepared is?? A. Bank account B. Profit and loss account adjustment C. The revaluation of assets D. Realization of income or loss S1: In a partnership, at least one partner is required to be a/an limited partner in order to ensure partnership creditors will be paid and protected S2: Unpaid liabilities should be included in computing for the total loss attributed to the partners. * A. Both statements are true B. s1 True; S2 False C. S2 True; S1 False D. Both statements are false S1: Joint Control is present if tow ore more parties have greater than 50% Control.S2: One Party has more than 50% in a joint arrangement * A. Both statements are false B. Both statements are true C. S2 True; S1 False D. s1 True; S2 False S1: If the total contributed capital of THE partnership is greater than the total agreed capital, it is possible that a goodwill be recognized or an undervaluation of asset occurred.S2: Noncash…
This is a characteristic of a limited partner. a. Limited Lifeb. Unlimited Lifec. Unlimited Liabilityd. Limited Liability After the first two steps of the closing entries, the entry to record the distribution of profit will include a debit to ____. a. Withdrawalb. Salaryc. Capitald. Income Summary In the absence of loss sharing agreement, losses shall not be divided among the partners. a. trueb. false Ownership is easily transferred in a partnership. a. trueb. false A partner who is known by outside parties as a partner but is not active in partnership operationsa. Ostensible Partnerb. Secret Partnerc. Silent Partnerd. Dormant Partner
no need to explain: The following transactions will affect the balance of the total partnership capital except a. retirement of a partner by paying an amount equal to his interest b. the partnership incurred net loss for the year c. admission by purchase with bonus d. permanent retirement by partners Upon dissolution, the partners may adjust the partnership assets and liabilities. The net effect of such restatement must be distributed to the partners based on their a. ending capital balances b. old profit and loss ratio c. new profit and loss ratio d. beginning capital balances
In accounting for the lump-sum liquidation of a partnership, cash payments to partners after all non-partner creditors’ claims have been satisfied, but before the final cash distribution should be according to: a. Safe payment computations. b. The final balances in partner capital accounts. c. The partners’ relative profit and loss sharing ratio. d.The partners’ relative share of the gain or loss on liquidation.