MEDIUM
Earn 100

What is the correct accounting treatment when a partner takes over an asset at a value different from its book value during dissolution?

50% studentsanswered this correctly

Important Questions on Economics

MEDIUM
Other Subjects>Economics>Economics>Simple Economics
Explain the process of dissolution of a partnership firm.
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
What is the format of a Realisation Account?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
What is a Realisation Account, and what is its purpose?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
What is the order of settlement of accounts on dissolution?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
How do you record the settlement of creditors at a discount during dissolution?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
What are the steps involved in preparing a Realisation Account during dissolution?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
What is the difference between dissolution of partnership and dissolution of a partnership firm?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
How should unrecorded assets be treated during dissolution?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
What journal entries are needed for realization of various assets and settlement of liabilities during dissolution?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
What are the journal entries required when creditors accept assets other than cash in full or partial settlement of their claims?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
How are reserves and accumulated losses distributed among partners during dissolution?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
What is the difference between firm’s debts and partner’s private debts?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
How are unrecorded assets treated at the time of dissolution of a firm?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
What is the impact on partners’ capital accounts when losses on realization are distributed among them?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
How should unrecorded liabilities be treated during dissolution?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
How are realisation expenses handled if they are paid by a partner?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
How does a realisation account differ from a revaluation account?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
How are realisation expenses handled if they are paid by the firm?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
How are unrecorded liabilities treated at the time of dissolution of a firm?
MEDIUM
Other Subjects>Economics>Economics>Simple Economics
How should a partner’s loan be dealt with if it appears on the liabilities side of the balance sheet during dissolution?