Question

what is partnership account

what is partnership account

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

When two or more persons join together as owners of a business and conduct the business by investing there and sharing profits or losses as agreed upon them, then such business becomes a partnership. Owners are known as partners. The business maintains each partner’s account separately – such as Partner’s Capital Account, and Partner’s Current Account. All sorts of transactions between the business and its partners (like drawings, interest on capital, etc.) are made through these accounts.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The capital account balances for Dina & Hanan partnership on January 1, 2018, were as follows:...
The capital account balances for Dina & Hanan partnership on January 1, 2018, were as follows: Dina Capital $200,000 Hanan Capital $100,000 Dina and Hanan shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit Maya to the partnership with a 35% interest in partnership capital and net income. Maya invested $100,000 cash, and no goodwill was recognized. What is the balance of Dina's capital account after the new partnership is created? A.   $140,000...
Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as...
Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: Floyd $55,000​ Merriam 17,000​ They agreed to admit Ramelow into the business for a one-third interest in the new partnership. Ramelow contributes $24,000 cash in exchange for the partnership interest. What is the correct capital account balance of Ramelow after he enters the business? a)$28,000 b)$32,000 c)$55,000 d)$24,000
As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account...
As of January 1, 2018, the partnership of Canton, Yulls, and Garr had the following account balances and percentages for the sharing of profits and losses: Cash $ 80,000 Noncash assets 205,000 Liabilities 47,000 Canton, capital (30%) 138,000 Yulls, capital (40%) 119,500 Garr, capital (30%) (19,500 ) The partnership incurred losses in recent years and decided to liquidate. The liquidation expenses were expected to be $10,000. What would be the maximum amount Garr might have to contribute to the partnership...
The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash $ 53,000 Liabilities...
The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash $ 53,000 Liabilities $ 41,000 Noncash assets 152,000 Hendrick, capital 123,000 Mitchum, capital 87,000 Redding, capital (46,000 ) This partnership is being liquidated. Hendrick and Mitchum are each entitled to 40 percent of all profits and losses with the remaining 20 percent going to Redding. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance? How should...
The Burr, Clinton and Hamilton partnership is entering into liquidation with the following account balances: cash...
The Burr, Clinton and Hamilton partnership is entering into liquidation with the following account balances: cash 117,000 liabilities 82,000 noncash assets 305,000 burr, capital 80,000 clinton, capital 100,000 howe, capital 160,000 total 422,000 422,0000 Estimated partnership liquidation expenses were $18,000. The partners share profits and losses in a ratio of 20:30:50. What amount of cash was available for safe payments based on the above information? How should the amount of safe cash payments be distributed? Use format provided below: Based...
The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash $ 59,000 Liabilities...
The partnership of Hendrick, Mitchum, and Redding has the following account balances: Cash $ 59,000 Liabilities $ 43,000 Noncash assets 158,000 Hendrick, capital 133,000 Mitchum, capital 93,000 Redding, capital (52,000 ) This partnership is being liquidated. Hendrick and Mitchum are each entitled to 40 percent of all profits and losses with the remaining 20 percent going to Redding. What is the maximum amount that Redding might have to contribute to this partnership because of the deficit capital balance? How should...
What is the difference between a general partnership and a limited partnership. What types of professional...
What is the difference between a general partnership and a limited partnership. What types of professional companies are organized as Llp’s and why
The net income of the Linder and Hill partnership is $250,000. The partnership agreement specifies that...
The net income of the Linder and Hill partnership is $250,000. The partnership agreement specifies that profits and losses will be shared equally after salary allowances of $200,000 (Linder) and $150,000 (Hill) have been allocated. At the beginning of the year, Linder 's Capital account had a balance of $500,000 and Hill's Capital account had a balance of $650,000. What is the balance of Hill's Capital account at the end of the year after profits and losses have been distributed?...
Problem 11-24 (LO. 2) When Teri's outside basis in the TMF Partnership is $80,000, the partnership...
Problem 11-24 (LO. 2) When Teri's outside basis in the TMF Partnership is $80,000, the partnership distributes to her $30,000 cash, an account receivable (fair market value of $60,000, inside basis to the partnership of $0), and a parcel of land (fair market value of $60,000, inside basis to the partnership of $80,000). Teri remains a partner in the partnership, and the distribution is proportionate to the partners. If an amount is zero, enter "0". c. How much is Teri's...
Marcus is to receive 30% of the profits from partnership Cowboy Boots, before taking into account...
Marcus is to receive 30% of the profits from partnership Cowboy Boots, before taking into account any quaranteed payments, but not less than $15,000. If the partnership's income is $30,000 before taking into account guaranteed payments, how much does Marcus receive as a quaranteed payment? A. $0, B. $9,000. C. $15,000. D. $24,000
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT