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Loose Leaf Advanced Accounting with Connect Access Card
12th Edition
ISBN: 9781259184741
Author: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
Publisher: McGraw-Hill Education
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Question
Chapter 15, 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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Students have asked these similar questions
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 15 Solutions
Loose Leaf Advanced Accounting with Connect Access Card
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What is the purpose of a statement of liquidation?...Ch. 15 - Prob. 6QCh. 15 - Prob. 7QCh. 15 - Prob. 8QCh. 15 - What is the purpose of a proposed schedule of...Ch. 15 - Prob. 10Q
Ch. 15 - Prob. 1PCh. 15 - Prob. 2PCh. 15 - Prob. 3PCh. 15 - Prob. 4PCh. 15 - A partnership is considering possible liquidation...Ch. 15 - Prob. 6PCh. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - Prob. 9PCh. 15 - Prob. 10PCh. 15 - Prob. 11PCh. 15 - Prob. 12PCh. 15 - Prob. 13PCh. 15 - Prob. 14PCh. 15 - Prob. 15PCh. 15 - Prob. 16PCh. 15 - Prob. 17PCh. 15 - Prob. 18PCh. 15 - Prob. 19PCh. 15 - The following balance sheet is for a local...Ch. 15 - Prob. 21PCh. 15 - Prob. 22PCh. 15 - Prob. 23PCh. 15 - Prob. 24PCh. 15 - Prob. 25PCh. 15 - March, April, and May have been in partnership for...Ch. 15 - Prob. 27PCh. 15 - Prob. 28PCh. 15 - Prob. 29PCh. 15 - Prob. 30PCh. 15 - Prob. 31P
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Similar questions
- How are safe capital balances computed when preliminary distributions of cash are to be made in a partnership liquidation?arrow_forward1. Describe how loans receivable from partners and loans payable to partners are treated in liquidation and why is that necessary? 2.arrow_forward. How are “advances or drawings of money or property against a partner’s distributive share of income” treated?arrow_forward
- Generally speaking, what events or activities would normally result in a partner’s capital account being debited?arrow_forwardWhich of the following can be used to offset a passive loss? a.Dividend income from stock held as an investment b.Active income such as wages c.Pension income d.Passive income such as income from a limited partnershiparrow_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_forward
- 18) Which one of the following will not be recorded in profit and loss appropriation account? a. Commission to partner b. Interest on capital c. Salary to partner d. Interest paid to bankarrow_forwardDuring a liquidation, in what instance when cash may be distributed to any of the other partners?arrow_forwardWhich one of the following item will be debited in profit and loss appropriation account? a. Interest on loan b. Interest on drawings c. Interest on deposits d. Bonus to partnersarrow_forward
- Which one of the following is a gain to the partners? a. Interest on loan from bank b. Withdrawal of capital c. Interest on drawings d. Interest on capitalarrow_forwardQuestions: What are the rules in distributing profits and losses? Is it valid to exclude a partner in the distribution of losses? Why? Why not?arrow_forwardWhat is the impact of subordination on the final allocation of proceeds from liquidation? In general jow much do unsecured creditors receive from a liquidation?arrow_forward
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