34. Dissolution is always followed by liquidation. . 0 The amount of asset revaluation when a new partner is admitted is shared by the existing partners equally. 34. Dissolution is always followed by liquidation. 35. A partnership may be dissolved without being liquidated. 36. Liquidation is always preceded by dissolution. 37. A bonus can only be recorded for a retiring partner if the partnership acquires the interest of the retiring partner. 38. The total contributed capital can never be greater than the total agreed capital. 39. If existing partners acquire the retiring partners' interest, the existing partners must purchase. the retiring partner's interest in proportion to their profit and loss ratio. 40. Bonus receive by the old partners are allocated in proportion to their profit and loss ratio.

34. Dissolution is always followed by liquidation. . 0 The amount of asset revaluation when a new partner is admitted is shared by the existing partners equally. 34. Dissolution is always followed by liquidation. 35. A partnership may be dissolved without being liquidated. 36. Liquidation is always preceded by dissolution. 37. A bonus can only be recorded for a retiring partner if the partnership acquires the interest of the retiring partner. 38. The total contributed capital can never be greater than the total agreed capital. 39. If existing partners acquire the retiring partners' interest, the existing partners must purchase. the retiring partner's interest in proportion to their profit and loss ratio. 40. Bonus receive by the old partners are allocated in proportion to their profit and loss ratio.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations

Section: Chapter Questions

Problem 47P

See similar textbooks

Similar questions

Write TRUE if the statement is correct and FALSE if the statement is wrong. Write your answers on the space provided before the number. Erasures are strictly NOT allowed. 1. The loss absorption balances represent the maximum loss that the partners could absorb without reducing their equity below zero. 2. Gains and losses on the sale of assets in liquidation are divided equally among partners. 3. A partnership maybe dissolved without being liquidated but liquidation is always preceded by dissolution. 4. Under the installment method of partnership liquidation, realization of non-cash assets is accomplished over an extended period of time. When cash is available, creditors may be partially or fully paid. Any excess maybe distributed to the partners in accordance with a program of safe payments or a cash priority program. This process persists until all the non-cash assets are sold. 5. Restricted interest are provided for assumed non-sale of remaining non-cash assets and…
Statement I: In lumpsum liquidation, the remaining cash available after realization and payment of liquidation expenses, will be equal to the total interest of the partners.Statement II: In installment liquidation, the partner who has the highest absorption capacity shall be prioritized in the payment of interest. Group of answer choices Both statements are false Both statements are true S1 is true; S2 is false S1 is false; S2 is true
1. During liquidation, a partners’ capital account balance drops below zero. What should happen? a. The partner with a deficit should contribute enough assets to offset the deficit balance. b. The other partners should file a legal suit against the partner with the deficit balance. c. The partner with the highest capital balance should contribute sufficient assets to eliminate the deficit. d. The deficit balance should be removed from the accounting records with only the remaining partners sharing in future gains and losses. 2. If the total debits in the statement of realization and liquidation exceeds the total credits, there is a.none of these b. net loss for the period c. either net gain for the period d.net gain for the period 3. In the liquidation of a partnership, a loan payable to a partner: a. Must be closed to that partners’ drawing account. b.Has the same priority as amounts payable to outside creditors of the partnership. c.Will not advance the time of payment to that…
S1: In liquidation process, the noncash assets are sold only to outside parties but never to any of the partners. S2: An insolvent partners’ capital deficiency can be solved by his additional cash contribution. a. Both statements are correct b. Both statements are incorrect c. Only S1 is correct. d. Only S1 is incorrect.
6 19 1. In the liquidation of general partnership, which of the following claims shall be settled first by the liquidating partner? Group of answer choices a. Advances made by capitalist partner to the partnership b. Employee benefits of workers c. Capital contribution by the managing partner d. Share in profit by the industrial partner 2. A partners retires from the partners and receives an amount higher than his capital balance at the time of his retirement. Under Philippine GAAP, which of the following explanation is valid if the capital balances of the remaining partners increase after such retirement? Group of answer choices a. Goodwill arising from partner's retirement has been recognized. b. Bonus has been given by remaining partners to retiring partner. c. Bonus has been given by the retiring partner to the remaining partners. d. Asset revaluation has been recognized at the time of retirement.
In the liquidation of a partnership, it is necessary to (1) distribute cash to the partners, (2) sell noncash assets, (3) allocate any gain or loss on realization to the partners and (4) pay liabilities. These steps should be performed in the following order Select one: a. (2), (3), (1), (4). b. (2), (3), (4), (1). c. (3), (2), (1), (4). d. (3), (2), (4), (1).
When a partnership dissolves, the last step in the dissolution process is to ________. A. allocate the gain or loss on sale based on income sharing ratio B. pay off liabilities C. sell noncash assets D. divide the remaining cash among the partners
Which of the following is not correct with respect to an installment liquidation of a partnership? A.) All remaining liquidation expenses are anticipated. B.) All non-cash assets are assumed to be worthless. C.) Distributions to partners are always made according to their profit sharing percentages. D.) Partners with the greatest ability to absorb losses and expenses are the first to receive installment distributions.
In the liquidation of a partnership it is important to (1) distribute cash to the partners, (2) sell noncash assets, (3) allocate any gain or loss on realization to the partners, and (4) pay liabilities. These steps should be performed in the following order: (3), (2), (4), (1) (3), (2), (1), (4) (2), (3), (1), (4) (2), (3), (4), (1)
Write a Sample Format of Statement of Liquidation (Lump Sump) Other Instruction (Assumptions) 1. Values should be written as XXX if positive and (XXX) if negative 2. 7 Partners [Jk, V, RM, Jimin, Hobi, Jin and Suga] 3. There is a gain in the realization of assets 4. There is liquidation expense. 5. V has receivables from partnership. 6. Jin and Suga have payables to the partnership
19 A partners retires from the partners and receives an amount higher than his capital balance at the time of his retirement. Under Philippine GAAP, which of the following explanation is valid if the capital balances of the remaining partners increase after such retirement? Group of answer choices a. Goodwill arising from partner's retirement has been recognized. b. Bonus has been given by remaining partners to retiring partner. c. Bonus has been given by the retiring partner to the remaining partners. d. Asset revaluation has been recognized at the time of retirement.
In the liquidation of a limited liability partnership, a loan payable to a partner by the partnership is: a. Considered to be the same as the partner's capital account b. Paid before all outside creditors have been paid in full c. Considered to be zero. d. Used to absorb the partner's share of losses on realization of assets