Multiple Choice: 1. The entry to record the exercise of the right of offset is...
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Accounting
Multiple Choice:
1. The entry to record the exercise of the right of offset is to
a. Debit partner's loan account and credit partner's capital
b. Debit partner's capital and credit partner's loan account
c. No entry
d. Credit partner's capital and debit cash
2. In accounting for liquidation of a partnership, cash payments to partners after all outside creditors' claims have been satisfied, but before the final cash distribution, should be made according to:
a. the partners' profit and loss sharing ratio
b. the final balances in partners' capital accounts
c. partner's share of the gain or loss on liquidation
d. safe payments computation
3. In an installment liquidation, the final cash distribution to the partners should be made in accordance with the
a. Ratio of the original capital contributions plus additional investment
b. Ratio of the capital contributions less withdrawals by the partners
c. Profit and loss sharing ratio
d. Balances of the partners' loan and capital accounts
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