Answer:
2) all of the partners in proportion to their shares of the profits
Explanation:
Partnership refers to a mutual agreement between two or more individuals, deciding to carry on a business and share it's risks and rewards in the profit sharing ratio as stipulated, or as provided in the partnership deed.
Upon retirement or death of any of the partners, the partnership is said to have been dissolved. Upon dissolution, the profits and losses arising consequently shall be shared by the remaining partners in their profit sharing ratio. A firm may decide to voluntarily dissolve too.
In the given case, upon dissolution, liabilities exceed assets and thus indicate a loss.
This loss shall be borne by all of the partners in their profit sharing ratio and not in the ratio of their capitals.
Answer:
a
Life
Explanation:
Life insurance is a contract where the insurance company undertakes to pay the amount stated in the policy document upon the insured's death. The insured, in turn, pays periodic insurance premiums to keep the contract in force.
Life insurance renders financial protection to the family and the insured upon their death. For an entrepreneur, the insurance company will compensate their family for the loss of income occasioned by their death.
Answer:
$4,000
Explanation:
The computation of the cash to be required to settle the liability is shown below:
= Purchase value of inventory - returned inventory which was purchased
= $5,000 - $1,000
= $4,000
It is a net purchase plus it is the cash required to settle the liability
There is no discount applied in the question as dates are not given so we ignored it.
Answer:
$88,920
Explanation:
capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920
Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.
Answer:
a. $0.30
Explanation:
Basic Earning Per Share (BEPS) = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stock.
Earnings Attributable to Holders of Common Stock calculation :
Net income after tax for the period $160,000
Less Preference Dividend ($10,000)
Earnings Attributable to Holders of Common Stock $150,000
Weighted Average Number of Common Stock calculation :
Outstanding common shares 500,000
Therefore,
Basic Earning Per Share (BEPS) = $150,000 ÷ 500,000
= $0.30
