Financial Accounting Questions

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The document contains a series of multiple-choice questions related to accounting, specifically focusing on the topic of piecemeal distribution of cash among partners in a firm. The questions cover various scenarios and methods for distributing assets during dissolution, including the consideration of capital ratios, profit-sharing ratios, and loan amounts.

Answer

The answers to the multiple choice questions are provided above.

Here are the answers to the multiple-choice questions:

  1. (b) A and B will get Rs. 10,000 and Rs. 5,000 resp.
  2. (a) will be distributed equally among each partner.
  3. (a) in proportion of profit and loss
  4. (d) Partner whose capital is more in proportion of his profit sharing ratio, gets first.
  5. d. paid first
  6. (c) will be in ratio of profit and loss
  7. (b) Rs. 46,500 and Rs. 31,500
  8. (c) Z will bring Rs. 200 and will pay to X
  9. (c) Rs. 80,000 will be paid first as secured debt and Rs. 20,000 as unsecured debt.
  10. (b) Rs. 55,000
  11. (b) profit sharing ratio
  12. (b) maximum loss method
  13. (c) profit sharing ratios
  14. (b) in profit sharing ratio
  15. (b) Piece-meal distribution
  16. (c) less.
Answer for screen readers

Here are the answers to the multiple-choice questions:

  1. (b) A and B will get Rs. 10,000 and Rs. 5,000 resp.
  2. (a) will be distributed equally among each partner.
  3. (a) in proportion of profit and loss
  4. (d) Partner whose capital is more in proportion of his profit sharing ratio, gets first.
  5. d. paid first
  6. (c) will be in ratio of profit and loss
  7. (b) Rs. 46,500 and Rs. 31,500
  8. (c) Z will bring Rs. 200 and will pay to X
  9. (c) Rs. 80,000 will be paid first as secured debt and Rs. 20,000 as unsecured debt.
  10. (b) Rs. 55,000
  11. (b) profit sharing ratio
  12. (b) maximum loss method
  13. (c) profit sharing ratios
  14. (b) in profit sharing ratio
  15. (b) Piece-meal distribution
  16. (c) less.

More Information

Piecemeal distribution is a process used when a partnership is dissolved and its assets are realized over a period of time, with cash being distributed to partners in installments. Several methods exist for determining the order and amount of these distributions, including the surplus capital method and the maximum loss method.

Tips

Understanding the different methods of piecemeal distribution (e.g., surplus capital method, maximum loss method) and their underlying principles is crucial for solving these problems. Also, carefully consider the profit-sharing ratio and capital contributions of each partner.

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