Question

when a partner retires and withdraws assets in excess of his book value, the remaining partners...

when a partner retires and withdraws assets in excess of his book value, the remaining partners absorb the excess:
a- based on their average capital balances
b- based on their ending capital balances
c- in their profit sharing ratio
d- equally
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Arlene, Brad, and Chick are partners, sharing income 2:1:2. After selling all of the noncash assets...
Arlene, Brad, and Chick are partners, sharing income 2:1:2. After selling all of the noncash assets for cash, dividing gains and losses on realization, and paying liabilities, the balances in the capital accounts are as follows: Arlene, $20,000 Credit; Brad, $10,000 Credit; and Chick, $30,000 Credit. How much cash should be distributed to Arlene? The capital balances in the ABC partnership shows a credit balance for partners A & B. Partner C, however, has a debit balance of $19,000. The...
The ABC partnership reports the following condensed balance sheet: Cash $ 480,000 Liabilities $2,000,000 Noncash assets...
The ABC partnership reports the following condensed balance sheet: Cash $ 480,000 Liabilities $2,000,000 Noncash assets 3,160,000 Partner A, capital 290,000 Partner B, capital 1,100,000 Partner C, capital 250,000 Total assets $3,640,000 Total liabilities and partner capital $3,640,000 The partners wish to liquidate the partnership. The noncash assets are sold for $2,300,000 with the loss distributed to the partners in the ratio of 30%/30%/40% to partner A, B, and C, respectively. The liabilities are paid in full. Assume that any...
The CRT partnership has decided to terminate operations and to liquidate the partnership assets. There are...
The CRT partnership has decided to terminate operations and to liquidate the partnership assets. There are no partner loans, and all partners have positive capital balances. Gains and losses on liquidation and cash distributions to partners should be allocated as follows: Gains and Losses Cash Distributions A) In profit and loss ratio Based on capital balances B) Based on capital balances In profit and loss ratio C) In profit and loss ratio In profit and loss ratio D) Based on...
35) When a new partner is admitted at a higher-than-book-value contribution, the existing partners will receive...
35) When a new partner is admitted at a higher-than-book-value contribution, the existing partners will receive a bonus amount. A. True; ____or B.False ____ 36) Keith and Jim are partners. Keith has a capital balance of $47,000 and Jim has a capital balance of $32,000. Jim sells $15,000 of his ownership to Bill. Which of the following is TRUE of the journal entry to admit Bill? A) Bill, Capital will be debited for $17,000. B) Jim, Capital will be debited...
In liquidation, just prior to the final distribution of cash to the partners, the balance in...
In liquidation, just prior to the final distribution of cash to the partners, the balance in the Cash account is $600,000; The partners have capital balances as follows: Presley, $290,000 credit; Laswell, $250,000 credit, and Hunter, $60,000 credit. The income ratio is 6:2:2, respectively. How much cash should be distributed to Presley? Partners Audrey, Betty, and Charles have capital account balances of $210,000 each. The income and loss ratio is 5:2:3, respectively. In the process of liquidating the partnership,noncash assets...
The following is an example of partnership income allocation: Each partner receives 7% interest on his...
The following is an example of partnership income allocation: Each partner receives 7% interest on his or her beginning capital account balances. Partner A receives a $20,000 salary and 30% of the profit or loss. Partner B receives a 15% bonus on distributable income after interest and salaries and shares in 25% of the profit and loss. Partner C has a profit and loss ratio of 45%. The partners beginning capital balances are as follows: A = $25,000 B =...
Liquidation schedule—one negative capital account with no capital contribution The ABC partnership reports the following condensed...
Liquidation schedule—one negative capital account with no capital contribution The ABC partnership reports the following condensed balance sheet: Cash $580,000 Liabilities $800,000 Noncash assets 1,200,000 Partner A, capital 450,000 Partner B, capital 450,000 Partner C, capital 80,000 Total assets $1,780,000 Total liabilities and partner capital $1,780,000 The partners wish to liquidate the partnership. The noncash assets are sold for $900,000 with the loss distributed to the partners in the ratio of 30%/30%/40% to partner A, B, and C, respectively. The...
6) The Hylands Hotels are liquidating their partnership. Before selling the assets and paying liabilities, the...
6) The Hylands Hotels are liquidating their partnership. Before selling the assets and paying liabilities, the capital balances for the partners are: Martha $45,000; Nathan $36,000 and Orin $26,000. The profit and loss sharing ratio has been 2:2:1 for Martha, Nathan and Orin respectively. The partnership has cash $68,000, $75,000 noncash assets and $36,000Accounts payable. 6a. Assume the partnership sells the non-cash assets and received $84,000 in cash. 6b. Assume the partnership sells the noncash assets and received $35,000. Instructions...
Assume that there are three partners in a partnership, A, B, and C. Partner C provides...
Assume that there are three partners in a partnership, A, B, and C. Partner C provides services to the partnership and is entitled to a salary of $90,000. Assume that the partnership revenues less expenses (other than salary to Partner C) amount is $480,000. Finally, assume that the Partnership Agreement provides for a sharing ratio of 40:40:20 for Partners A, B, and C, respectively. How much profit should be allocated to each partner? a. Partner A gets $156,000, Partner B...
1. Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent...
1. Admitting New Partners Who Buy an Interest and Contribute Assets The capital accounts of Trent Henry and Tim Chou have balances of $187,500 and $135,200, respectively. LeAnne Gilbert and Becky Clarke are to be admitted to the partnership. Gilbert buys one-fifth of Henry’s interest for $43,100 and one-fourth of Chou’s interest for $29,700. Clarke contributes $45,800 cash to the partnership, for which she is to receive an ownership equity of $45,800. a1. Journalize the entry to record the admission...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT