9. Final distribution of partnership cash in made in according to what rule:
a. partner with highest capital balance paid first
b. partner who joined the partnership earliest is paid first
c. partner who worked the hardest is paid first
d. partners are paid in proportion to original profit and loss percentages
e. partners are paid in proportion to final capital balances
10. Which is true about obligations due to partnership creditors in a liquidation of a partnership.
a. partnership creditors may claim against any partner’s personal assets
b. partnership creditors may claim against any partner’s personal creditors
c. partnership creditors may claim against other partnership creditors
d. partnership creditors may claim to the lesser of partnership cash or any partner’s positive capital balances
e. partnership creditors may claim to the higher of partnership cash or any partner’s positive capital balances
11. Partner Xiao is insolvent, having no personal assets and owes $50,000 to his personal creditors. Xiao is a partner with Williams and Zellin and the partnership balance sheet is as follows:
Partnership Balance Sheet
Cash $240,000 Liabilities $150,000
Xiao Capital 20,000
Williams Capital 30,000
Zellin Capital 40,000
How much can Xiao’s personal creditors claim against partnership cash
12. Foot and Shoe organize a partnership and agree both will begin with equal capital balances. Foot contributes fixed assets with a fair value of $80,000. Shoe contributes inventory with a fair value of $20,000 and his expertise. It is decided that they will use the goodwill method to account for the partners capital. How much is the total goodwill to be recorded by the partnership.
If you have any queries kindly post a comment, i will solve it earliest.
If you satisfied with my answer, kindly give a thumbs up, it will help to encourage me.
Get Answers For Free
Most questions answered within 1 hours.