ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Question
Chapter 15, Problem 15.1C
To determine
- Name of partnership and partners.
- Type of business to be conducted by the partnership.
- Initial capital contribution of each partner and method of future capital contributions.
- Manner of distribution of profit or loss, including salaries, interest on capital bonuses and limit of withdrawals.
- Procedure for changes in partnership such as admission on new partners.
- Other aspects such as
management and accounting methods to be used.
why a partnership agreement may need additional features in addition to income and loss sharing ratio.
To determine
Partnership agreement:It is formal written agreement between partners. Partners are strongly advised to have a formal written agreement to avoid potential problems that could arise during the operation of the business. Each partner should sign the partnership agreement to indicate acceptance of its terms. A partnership agreement should include following items.
- Name of partnership and partners.
- Type of business to be conducted by the partnership.
- Initial capital contribution of each partner and method of future capital contributions.
- Manner of distribution of profit or loss, including salaries, interest on capital bonuses and limit of withdrawals.
- Procedure for changes in partnership such as admission on new partners.
- Other aspects such as management and accounting methods to be used.
To discuss:The arguments against recording salary and bonus to partners’ as expenses included in computation of net income.
To determine
It is formal written agreement between partners. Partners are strongly advised to have a formal written agreement to avoid potential problems that could arise during the operation of the business. Each partner should sign the partnership agreement to indicate acceptance of its terms. A partnership agreement should include following items.
- Name of partnership and partners.
- Type of business to be conducted by the partnership.
- Initial capital contribution of each partner and method of future capital contributions.
- Manner of distribution of profit or loss, including salaries, interest on capital bonuses and limit of withdrawals.
- Procedure for changes in partnership such as admission on new partners.
- Other aspects such as management and accounting methods to be used.
To discuss: The arguments against recording salary and bonus to partners’ as partnership expenses.
To determine
It is formal written agreement between partners. Partners are strongly advised to have a formal written agreement to avoid potential problems that could arise during the operation of the business. Each partner should sign the partnership agreement to indicate acceptance of its terms. A partnership agreement should include following items.
- Name of partnership and partners.
- Type of business to be conducted by the partnership.
- Initial capital contribution of each partner and method of future capital contributions.
- Manner of distribution of profit or loss, including salaries, interest on capital bonuses and limit of withdrawals.
- Procedure for changes in partnership such as admission on new partners.
- Other aspects such as management and accounting methods to be used.
To discuss: the list of additional provisions that should be included in partnership agreement for the interest amount calculation.
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Students have asked these similar questions
Which of the following statements is correct in relation to limited partners?
Select one:
a. Their liability is limited to the capital they have agreed to invest in the partnership
b. They have no liability for partnership debts
c. They have full liability for partnership debts.
Which of the following, in the context of entering into a contract, constitutes a binding offer to sell a unique item of furniture?
Select one:
a. Placing it on display inside a shop with a price attached
b. Placing an advert in the newspaper with a price attached
c. Telling someone the price you may be willing to accept for it
d. Telling someone you will reduce the marked price on it by 10%
A.What is partnership accounts and what are the necessary components ofpartnership accounts that a company should consider when preparingpartnership accounts and why?B. How can you differentiate the company’s accounts from partnership accounts and on what grounds?
QUESTION NO. 1:
Having the clear understanding of company’s accounts and partnership accounts you are required to answer the following questions.
What is partnership accounts give example and what are the necessary components of partnership accounts that a company should consider when preparing partnership accounts and why?
How can you differentiate the company’s accounts from partnership accounts and on what grounds?explain with the help of example.
(important instructions: content should be original with 0% plagirisim, answer should be in details with proper explanation and examples)
Chapter 15 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 15 - Prob. 15.1QCh. 15 - Prob. 15.2QCh. 15 - Prob. 15.3QCh. 15 - Prob. 15.4QCh. 15 - Under what circumstances would a partner’s capital...Ch. 15 - Prob. 15.6QCh. 15 - Prob. 15.7QCh. 15 - Prob. 15.8QCh. 15 - Prob. 15.9QCh. 15 - Prob. 15.10Q
Ch. 15 - Prob. 15.11QCh. 15 - Prob. 15.12QCh. 15 - Prob. 15.13QCh. 15 - Prob. 15.14QCh. 15 - Prob. 15.15AQCh. 15 - Prob. 15.16BQCh. 15 - Prob. 15.1CCh. 15 - Prob. 15.2CCh. 15 - Prob. 15.3CCh. 15 - Prob. 15.1.1ECh. 15 - Prob. 15.1.2ECh. 15 - Prob. 15.1.3ECh. 15 - Prob. 15.1.4ECh. 15 - Multiple-Choice on Initial Investment [AICPA...Ch. 15 - Prob. 15.2ECh. 15 - Prob. 15.3ECh. 15 - Prob. 15.4ECh. 15 - Prob. 15.5ECh. 15 - Prob. 15.6ECh. 15 - Prob. 15.7ECh. 15 - Prob. 15.8.1ECh. 15 - Prob. 15.8.2ECh. 15 - Prob. 15.8.3ECh. 15 - Prob. 15.8.4ECh. 15 - Prob. 15.8.5ECh. 15 - Prob. 15.8.6ECh. 15 - Prob. 15.8.7ECh. 15 - Prob. 15.8.8ECh. 15 - Prob. 15.9ECh. 15 - Retirement of a Partner On January 1, 20X1, Eddy...Ch. 15 - Prob. 15.11PCh. 15 - Prob. 15.12PCh. 15 - Prob. 15.13PCh. 15 - Prob. 15.14PCh. 15 - Withdrawal of a Partner under Various Alternatives...Ch. 15 - Prob. 15.16.1PCh. 15 - Prob. 15.16.2PCh. 15 - Prob. 15.16.3PCh. 15 - Prob. 15.16.4PCh. 15 - Prob. 15.16.5PCh. 15 - Prob. 15.16.6PCh. 15 - Prob. 15.16.7PCh. 15 - Prob. 15.16.8PCh. 15 - Prob. 15.16.9PCh. 15 - Prob. 15.17PCh. 15 - Prob. 15.18PCh. 15 - Initial investments and Tax Bases [AICPA Adapted]...
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Similar questions
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