User Account

All Pages

What ratio should be used to allocate to laura and maria

Assignment Help Financial Accounting
Reference no: EM132806769

Problem 1: In the LM Partnership, Laura and Maria had a capital ratio of 3:1 and a profit and loss ratio of 2:1, respectively. They used the bonus method to record Nora's admittance as a new partner. What ratio should be used to allocate, to Laura and Maria, the excess of Nora's contribution over the amount credited to Nora's capital account?

A. Laura and Maria's new relative capital ratio

B. Laura and Maria's new relative profit and loss ratio

C. Laura and Maria's old capital ratio

D. Laura and Maria's old profit and loss ratio

Problem 2: When Mr. X is admitted to the partnership, the fair value of the assets he contributes exceeds his initial capital balance. If Mr. Z will retire soon from the partnership, what method of recording Mr. X's admission should Mr. Z prefer?

A. The bonus method

B. The revaluation method

C. Either the bonus or the revaluation method

D. Neither the bonus or the revaluation method

Reference no: EM132806769

Questions Cloud

Which true about computation of average capital of partners : Property other than cash which is part of the initial investment in the partnership would be recorded for financial accounting purposes at the
How can we do a better job preparing students for success : How can we do a better job preparing students for success in the middle and high school grades in writing and language arts? Please no plagiarism and quality.
Who gets the bonus under the bonus method : The fair values of the assets he contributed exceed his initial capital balance. In this case who gets the bonus under the bonus method?
Compute the actual amount of inventory that was lost in fire : A fire engulfed the company during the new year celebration heading into 2019. Compute the actual amount of inventory that was lost in the fire
What ratio should be used to allocate to laura and maria : What ratio should be used to allocate, to Laura and Maria, the excess of Nora's contribution over the amount credited to Nora's capital account?
Should professionals have a caring toward their clients : Should professionals have a caring toward their clients or should they maintain distance? What recommendations would you have from the Social Work Ethical.
Which conditions constitute legal dissolution of partnership : When the investment of a new partner exceeds the new partners initial capital balance and there are no partnership assets to be revalued, who will receive bonus
Clearwater electronic production lines : An employee on one of Clearwater Electronics' production lines violated safety protocols by disabling a machine's safety guard. The line manager wrote up the em
Communicate knowledge of taxation law : Communicate knowledge of taxation law, through written and/or oral communication, and be able to demonstrate critical thinking and legal analytical skills

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd