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4vir4ik [10]
2 years ago
8

If at the time of partnership liquidation, a partner has a $5,000 capital deficiency and pays the partnership $5,000 out of pers

onal assets to cover the deficiency, then that partner is entitled to share in the final distribution of cash. True or false?
Business
1 answer:
ddd [48]2 years ago
3 0

Answer:

TRUE

Explanation:

At the time of capital deficiency and the partner pays the deficit amount using his personal asset, he is therefore entitled to his share in the final distribution of cash. In the event the partner did not pay the deficit amount during the deficiency, the said amount will be deducted by his share before he will be entitled to any excess. A partner that is bound up to his personal asset is the general partner. Limited partners are not liable up to their personal asset and bound only up to their capital contribution provided that they are registered in the articles of partnership as 'limited partner" and they will not take part in the management of the partnership.

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Palencia Paints Corporation has a target capital structure of 35% debt and 65% common equity, with no preferred stock. Its befor
Arturiano [62]

Answer:

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Explanation:

D1 is  

D1= 2.25 (1+0.05)

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4 0
3 years ago
On July 1, 2020, Indigo Co. pays $9,400 to Sweet Insurance Co. for a 2-year insurance policy. Both companies have fiscal years e
aliya0001 [1]

Answer:

Explanation:

The journal entries are shown below:

On July 1

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    To Cash A/c $9,400

(Being the prepaid insurance for cash is recorded)

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3 years ago
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