FUNDAMENTALS OF ADVANCED ACCOUNTING >I
6th Edition
ISBN: 9781307007350
Author: Hoyle
Publisher: MCG/CREATE
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Chapter 10, Problem 3Q
To determine
Describe the reason for recording liquidation gains and losses usually as direct adjustments to the partners’ capital accounts.
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Why are liquidation gains and losses usually recorded as direct adjustments to the partners’ capital accounts?
State the method to determine the amounts to be paid to partners in a liquidation.
How do loans from partners affect the distribution of assets in a partnership liquidation?
Chapter 10 Solutions
FUNDAMENTALS OF ADVANCED ACCOUNTING >I
Ch. 10 - Prob. 1QCh. 10 - Prob. 2QCh. 10 - Prob. 3QCh. 10 - Prob. 4QCh. 10 - What is the purpose of a statement of liquidation?...Ch. 10 - Prob. 6QCh. 10 - Prob. 7QCh. 10 - Prob. 8QCh. 10 - What is the purpose of a proposed schedule of...Ch. 10 - Prob. 10Q
Ch. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - A partnership is considering possible liquidation...Ch. 10 - What is a predistribution plan? a. A list of the...Ch. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17PCh. 10 - Prob. 18PCh. 10 - Prob. 19PCh. 10 - The following balance sheet is for a local...Ch. 10 - Prob. 21PCh. 10 - Prob. 22PCh. 10 - Prob. 23PCh. 10 - Prob. 24PCh. 10 - Prob. 25PCh. 10 - March, April, and May have been in partnership for...Ch. 10 - Prob. 27PCh. 10 - Prob. 28PCh. 10 - Prob. 29PCh. 10 - Prob. 30PCh. 10 - Prob. 31P
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- What is the first step in a partnership liquidation (termination and sale of assets)?arrow_forwardHow much cash was received by A at the end of partnership liquidation?arrow_forwardA partner's withdrawal of assets from a LLP that is considered a permanent reduction in that partner's equity is debited to the partner's: Select one :- a. Retained Earnings account b. Loan Receivable account c. Drawing account d. Capital accountarrow_forward
- IDENTIFICATION: Another term for liquidation by total. A partner whose capital account balance is debit. A financial statement that shows the result of the liquidation process. It is transfer of capital from one partner to another. The person assigned to monitor the liquidation process. It is the termination of the life of the partnership.arrow_forwardClaims against partners personal assets by creditors if the partnership can't pay its debts refers to? a liquidation differs from a dissolution in that in a liquidation?arrow_forwardThe partner's capital account is credited in the following cases except in posting of the a. share in profit b. additional capital c. original capital d. closing entry of the drawing account at the end of the periodarrow_forward
- During a liquidation, in what instance when cash may be distributed to any of the other partners?arrow_forwardChoose the correct.Which of the following statements is true concerning the accounting for a partnership going through liquidation?a. Gains and losses are reported directly as increases and decreases in the appropriate capital account.b. A separate income statement is created to measure only the profit or loss generated during liquidation.c. Because gains and losses rarely occur during liquidation, no special accounting treatment is warranted.d. Within a liquidation, all gains and losses are divided equally among the partners.arrow_forwardGenerally speaking, what events or activities would normally result in a partner’s capital account being debited?arrow_forward
- Which one of the following will be recorded under debit side of the partners' capital account? a. Partner's salary b. Partners' share of profit c. Interest on capital d. Interest on drawingsarrow_forwardThe accounting treatment of share of undistributed profit or reserves will be a. Debited to the capital account of the deceased partner b. Debited to the capital account of the legal representative of the deceased partner c. Credited to the capital account of the deceased partner d. Credited to the capital account of the legal representative of the deceased partner NO TIME FAST PLZarrow_forwardIn liquidation of LLP, for allocation of realization losses to partners, the journal entry includes: a. Debit each partner’s capital with his/her share in gains based final capital balances. b. Debit each partner’s capital with his/her share in gains based on income sharing ratios. c. Credit each partner’s capital with his/her share in gains based final capital balances. d. Credit each partner’s capital with his/her share in gains based on income sharing ratios.arrow_forward
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