PARTNERSHIP- LIQUIDATION

This results when a partner dies and the remaining partners decide to terminate the business

• dissolution

• liquidation

• incorporation

• recognition

In liquidation , the sale of the non-cash assets is called

• realization

• net proceeds

• gain from sale

• loss from sale

When there is a capital deficiency , the effect is that

• the partner's equity will increase

• the cash and other assets will also be deficient

• the liabilities and the partners equity will also decrease

• there is no effect on the asset and liabilities

if a capital is deficient but there is a loan payable to B, the right of offset can be applied

• true

• false

a partner whose personal assets are less than his personal liabilities is

• deficient

• solvent

• deficient but solvent

• insolvent

a loan payable to a partner may be offset against his deficiency just as a loan receivable from a partner may be offset against his capital balance

• true

• false

a deficient and insolvent partner will still have a chance to receive cash from the partnership if

• there is a loan payable to him which is higher than the deficiency and insolvency of the partner

• there is a loan payable to him which is higher than his capital deficiency

• decif he makes additional investment

• if the other partners will absorb his deficiency

if the proceeds from the sale is less that the book value of the non-cash assets sold will

• decrease the partnership assets but increase the partners equity

• increase the partnership assets but decrease the partners equity

• decrease both the partnership assets and the partners equity

• increase both the partnership assets and the partners equity

the feature of unlimited liability covers all partners except

• general partners

• industrial partners

• capitalist partners

• limited partners

A deficiency occurs in a partner when

• his personal assets are less than his personal liabilities

• his share in the losses of the partnership is more than his capital balance

• his personal assets are lesser than his capital balance

• loan payable by the partnership to him than his capital balance