Reference no: EM133036005
Question -
1. Statement 1: In a partnership, at least one partner is required to be a limited partner in order to ensure partnership creditors will be paid and protected. Statement 2: Unpaid liabilities should be included in computing for the total loss attributed to the partners.
S1 True; S2 False
S2 True; S1 False
Both statements are true
Both statements are false
2. Gummy, Jennifer, and Bella are partners who decided to terminate their partnership due to misunderstanding. Total assets of the partnership is $480,000 including cash of $30,000. Capital balances of the partners were as follows Gummy $150,000; Jennifer $175,000; Bella $67,500. Unpaid liabilities amounted to $87,500. Assets with a book value of $175,000 were sold for $125,000 and the cash was distributed. The profit or loss ratio is 5:3:2. How much must the remaining assets be sold in order for Jennifer to receive $197,500 after liquidation?
3. Juanda and Poppy are partners who share profits and losses in the ratio of 3:2 respectively. Juanda's salary is $180,000 and Poppy's is $140,000. The partners are paid interest on their average capital balances where Juanda received interest of $30,000 and Poppy, $15,000. The profit and loss allocation is determined after deduction for the salary and interest payments. If Juanda received $280,000 from partnership income, how much was the total partnership income?
4. The partners of AAA Partnership are Delia, Nada, and Romina. During the current year, their average capital balances are as follows: Delia - $180,000; Nada - $160,000; Romina - $150,000. The articles of partnership provided the following terms: 1. Annual interest of 8% on their average capital balances. 2. Salary allowances as follows: Delia - $50,000 and Nada - $80,000. 3. Nada shall receive bonus of 15% of income in excess of $40,000 after partner's interest and salary allowances. 4. Residual profits shall be divided in the ratio of 2:2:6 to Delia, Nada and Romina. How much will Ana receive if the net income earned is $470,000?