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D. Any of The Above, Depending Upon The Partnership Agreement

A partner's investment in a partnership is recorded at the agreed upon value in the partnership agreement, which can be market value, a special value set by partners, or the partner's book value. When a partner withdraws, asset adjustments for fair value are credited to the partner's capital account. Final cash distributions in liquidation should be made according to partner capital account balances.

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64 views1 page

D. Any of The Above, Depending Upon The Partnership Agreement

A partner's investment in a partnership is recorded at the agreed upon value in the partnership agreement, which can be market value, a special value set by partners, or the partner's book value. When a partner withdraws, asset adjustments for fair value are credited to the partner's capital account. Final cash distributions in liquidation should be made according to partner capital account balances.

Uploaded by

PrankyJelly
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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A partnership records a partner’s investment of assets in the business at

a. The market value of the assets invested


b. A special value set by the partners
c. The partner’s book value of asset invested
d. Any of the above, depending upon the partnership agreement

Before the withdrawal of a partner from their partnership, the partners agreed to adjust assets
to their fair values. Accordingly, the appraisal increase was credited to
a. Income summary
b. Deferred credit
c. Appraisal capital
d. Capital account

The final cash distribution to the partners in a partnership liquidation should be made in
accordance with
a. Balances of the partners’ capital accounts
b. Partner’s profit and loss sharing ratio
c. Ratio of capital contributions made by the partners
d. Ratio of capital contributions less withdrawals made by the partners

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