Which of the following partnership transactions are merely transfers of equity? a. Northwest retires from the partnership ad the partnership pays him P50,000 as full settlement of his capital balance. b. Southeast dies and his wife receives settlement amounting to P80,000 from the partnership. c. South withdraws from the partnership when his interest was bought out by his co-partners West and East. d. North invests P20,000 cash for a 20% interest in the partnership. The partners agreed capital is P125,000 and the contributed capital of old partners areP105,000
Which of the following partnership transactions are merely transfers of equity? a. Northwest retires from the partnership ad the partnership pays him P50,000 as full settlement of his capital balance. b. Southeast dies and his wife receives settlement amounting to P80,000 from the partnership. c. South withdraws from the partnership when his interest was bought out by his co-partners West and East. d. North invests P20,000 cash for a 20% interest in the partnership. The partners agreed capital is P125,000 and the contributed capital of old partners areP105,000
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 55P
Related questions
Question
Which of the following partnership transactions are merely transfers of equity?
a. Northwest retires from the partnership ad the partnership pays him P50,000 as full settlement of his capital balance.
b. Southeast dies and his wife receives settlement amounting to P80,000 from the partnership.
c. South withdraws from the partnership when his interest was bought out by his co-partners West and East.
d. North invests P20,000 cash for a 20% interest in the partnership. The partners agreed capital is P125,000 and the contributed capital of old partners areP105,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College