1.Which of the following characteristics refers to the fact that the property in

Question

1.Which of the following characteristics refers to the fact that the property invested in a partnership by a partner becomes the joint property of all the partners?

a. Mutual agency b. Co-ownership c. Mutual ownership d. Participation in partnership

2.The journal entry to record the existing partners' purchase of a withdrawing partner's interest includes a

a.debit to the cash account of the partnership.

b.debit to the capital account of the partner withdrawing.

c.debit to the capital account of the partners buying the additional interest.

d.credit to the capital account of the partner withdrawing.

3.In a partnership liquidation,

a.the partners' accounts are settled on the basis of their stated ratios.

b.creditors should be paid before partners.

c.gains and losses on the sale of assets are allocated to the partners on the basis of their current capital accounts.

d.the last journal entry credits the partners' capital accounts for the remaining cash.

Explanation / Answer

1) option b is the answer Co-ownership 2) option b debit to the capital account of the partner withdrawing 3) option b creditors should be paid before partners

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