QUESTION 5 If All is not a partner in a General Partnership, but his name was included in the company name without his approval, then All would be: O a. Fully liable to the company's losses O b. Liable for only 50% of the company's losses c. Not liable for the company's losses Od. Considered a Limited Partner QUESTION 6 A worker who has completed one year of service shall, for each year of service, be entitled to an annual leave of not less than: a. 21 days a year b.2 days a month c. 30 days a year d. 3 days a month QUESTION 7 Limited Liability Company's name must include the names of the actual partners. ( ) True False QUESTION 8 The minimum amount of capital for a Public Joint Stock Company is: O a AED 5 million b. AED 15 million. C. AED 10 million. Od. AED 30 million

QUESTION 5 If All is not a partner in a General Partnership, but his name was included in the company name without his approval, then All would be: O a. Fully liable to the company's losses O b. Liable for only 50% of the company's losses c. Not liable for the company's losses Od. Considered a Limited Partner QUESTION 6 A worker who has completed one year of service shall, for each year of service, be entitled to an annual leave of not less than: a. 21 days a year b.2 days a month c. 30 days a year d. 3 days a month QUESTION 7 Limited Liability Company's name must include the names of the actual partners. ( ) True False QUESTION 8 The minimum amount of capital for a Public Joint Stock Company is: O a AED 5 million b. AED 15 million. C. AED 10 million. Od. AED 30 million

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter11: Stockholders' Equity

Section: Chapter Questions

Problem 11.9AP

See similar textbooks

Similar questions

Question 1 • Rachael and Olivia are business partners in RO Dance Their partnership agreement states that the partners will share income in a 3:1 ratio (Rachael, Olivia). Part of the agreement includes a salary allowance of $43,000 for Rachael and $26,000 for Olivia. For the current year. RO Dance has a net loss of $5,000. The entries to close the income summary account after allocating the loss to the partners include • a debit to Rachael, Capital $12,500 and a credit to Olivia, Capital $7,500 a credit to Rachael, Capital $12,500 and a debit to Olivia, Capital $7,500 • a debit to Rachael, Capital $12,500 and a debit to Olivia, Capital $7,500 • a credit to Rachael, Capital $12,500 and a credit to Olivia, Capital $7,500 None of these choices are correct
QUESTION 39 Which of the following companies is dissolved on the death of any of the partners? OaA Limited Liability Company Ob. A Private Joint Stock Company c. A Public Joint Stock Company d. A General Partnership QUESTION 40 A worker whose period of service is more than six months but less than one year shall, for each year of service, be entitled to an annual leave of not less than: Ⓒa. 2 weeks a year Ⓒb. 3 days a month O G. 2 days a month d. 3 weeks a year QUESTION 41 In LLCs, all partners must be UAE nationals. ( ) O True False QUESTION 42 Public Joint Stock Companies must have a minimum of five founders who will fully subscribe to the capital. ( ) True False
Homework Activity 2 A B and C are in partnership sharing profits and losses in the ratio of 3:2:1. On 1st Jan 2019, their capital balances are: A 30,000 B 20,000 C 10,000 The terms of partnership provides that All partners are eligible for interest on capital @6% All partners are liable to pay interest on drawings @ 4% All Partners are eligible for salary @ RO 200 per month The net profit for the year ended 31st Dec 2019 before making the above terms was 18,000. The drawings of the partners were: A 3,000 B 2,000 C 1,000 You are requested to prepare Profit and Loss Appropriations Account Capital accounts of three partners under fluctuating capital method
Question No:1 Mr. Suhail and Mr. Said decided to start a partnership business. They drafted a partnership deed with the help of a consultant and started the business on 01.11.2020 Some of the key extracts of the partnership deed is given as follows: Resolved that. Each partner is to bring in OMR 15,000 as capital Each partner is to get 5% interest on capital Suhail is entitled to get a salary of OMR 400 per month Firm is entitled to charge 6% interest per annum on partner’s drawings. Summary of transactions: November: 2020 Capital contribution: Mr. Suhail –OMR 15000; Mr. Said: OMR 15000 Purchase of goods- OMR 8,000 Sales of goods- OMR 18,000 Wages- OMR 200 Salary to employees- OMR 1,200 Other administrative expenses- OMR 800 Rent of building- OMR 1,000 Electricity charges- OMR 15 Water charges- OMR 5 Travelling expenses- OMR 50 Furniture purchase- OMR 1,500 Electrical fittings- OMR 200 Drawings of partners-: Mr. Suhail –OMR 200; Mr. Said; OMR 150 Salary to Mr. Suhail-…
Question 5 Allan, Bryan and Catty are partners in a partnership engaging in a food catering business. The terms of the partnership agreement until 30 September 2021 were as follows: Allan Bryan Catty RM RM RM Capital contribution Salary per annum Interest on capital per annum Partners' private expenses 90,000 60,000 105,000 75,000 72,000 54,000 5% 5% 5% 10,000 9,000 7,000 On 30 September 2021, Bryan withdrew as a partner. Upon the withdrawal of Bryan, the interest on capital for Allan and Catty was revised to 4% per year with the other terms remaining the same. The profit or loss is shared equally among the partners throughout the whole year. The provisional adjusted income for the year ended 31 December 2021 was RM280,926. The capital allowance on the plant and machinery was RM4,000. The partnership made a cash donation of RM6,000 to an approved institution on 30 June 2021. Required: Compute the divisible income for the partnership and the total income of the partners for the year of…
Which of the following transactions is NOT treated as a transaction occurring between a partnership and a partner not in his capacity as a partner? O A $30,000 loan from a 15% partner to the partnership. O A 30% partner receiving $80,000 a year to manage the operations of the partnership. O A 10% partner receiving $3,000 a year to prepare the income tax returns of a partnership in the business of manufacturing and selling furniture. O A 20% partner selling a small building to the partnership for $100,000. O A partnership leasing land tha 15% partner for the partner's personal use.
True/False ____ 18. The stock dividends distributable account is listed in the current liability section of the balance sheet. ____ 19. The salary allowance allocation to partners used in dividing net income would also appear as salary expense on the partnership income statement. ____ 20. A devotes full time and B devotes one-half time to their partnership. If the partnership agreement is silent concerning the division of net income, A will receive a $20,000 share of a net income of $30,000. ____ 21. XX sells (for $40,000 cash) to AA one-half of a partnership capital interest that totals $70,000. AA's capital account in the partnership should be credited for $40,000. ____ 22. A corporation has 12,000 shares of $20 par value stock outstanding that has a current market value of $150. If the corporation issues a 4-for-1 stock split, the market value of the stock will fall to approximately $50. ____ 23. The declaration of a cash dividend decreases a corporation's…
Make-up assignment Partnership Dissolution Instruction: Prepare the answers and solutions in written form using a clean paper (e.g. Yellow pad, bond paper, notebook etc.) and submit a snapshot in CANVAS. Problem 1. A and B are partners in an electrical repair business. Their respective capital balances are P90,000 and P50,000, and they share profits or losses equally. Because the partners are confronted with personal financial problems, they decided to admit a new partner to the partnership. After an extensive interviewing process, they elect to admit C into the partnership. Required: Prepare the journal entry to record the admission of C into the partnership and determine capital balances of A, B and C under each of the following condition: 1. Cacquires one-fourth interest of A's capital interest by paying 30,000 directly to him. 2. Cacquires one-fifth interest of each A and B capital interest. A receives P25,000 and B receives P15,000 directly from C. 3. Cacquires a one-fifth…
16. A person may become a partner in a partnership by all of the following methods except A. Investing in the partnership with a bonus to the new partners B. Making a loan to the partnership C. Investing in the partnership with a bonus to the old partnes D. Purchasing a partner's interest 17. B. Andy's interest in the partnership is 110,000. M. Joy buys Andy's interest for 120,000. How much is the capital balance of Joy after the purchase? А. 120,000 В. 110,000 С. 130,000 D. 140,000 18. L. Garcia, A. Harina, and E. Isla are partners with capital of P90,000,P50,000, and P60,000, respectively. M. Joson is admitted into the partnership with 4 interest upon payment of 80,000. If the old partners share profits and losses in the ratio of 2/5, 2/5, and 1/5, then the capital account of Isla after the admission of Joson will show a balance of А. 50,000 В. 52,500 С. 62,000 D. 70,000
1. X assigned his partnership shares to Y. X did not get the consent from the other partners but he informed them that he is assigning all his rights to Y. From among the list, what is NOT a right available to Y? a. Right to assets after dissolution b. Right for accounting c. Share in the profits d. Inspect the books 2. Before the partnership was executed, the partners agreed that they will only exist for 10 years. On the 10th year, the partnership started its dissolution. What kind of dissolution is applied? a. By operation of law b. Judicial c. Extrajudicial d. None of the above
PROBLEM 2 -3 D, E and F share partnership profits in the ratio of 2:3:5. On September 30, F opted to retire from the partnership. The capital balances on this date follow: D, Capital - P25,000 E, Capital - P40,000 F, Capital - P35,000 a. How much is to be debited from D, assuming F is paid P39,000 in full settlement of his partnership interest (bonus method)? b. How much is the capital of E after the retirement of F? c. Assuming asset revaluation method, how much is the capital of D after the retirement of F? d. Assuming asset revaluation method, how much is the capital of E after the retirement of F?
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.