Question

46. 47. This is a valid revaluation entry for fixed asset: Debit Joel Santos, capilar al IVUITOR Gain on realization means the carrying amount of fixed assets sold is exceeded by the selling price, 48. When a sole proprietor has Accounts Receivable as part of his investment in the newly-formed partnership, the account is recorded in the partnership books at an amount net of the allowance for doubtful accounts. 49. A partnership usually has greater capitalization than that of a corporation 50. The final credit balance of the Income Summary account means the result of operation is a net loss, 51. Investment by a partner in the form of Accounts Receivable is acceptable when a partnership is being formed 52. Admission of new partner by investment always increases total assets but has no effect on total capitalization 53. Mutual agency, unlimited life, and unlimited liability are among the general characteristics of a partnership 54. When a fixed asset is overvalued, the appropriate revaluation entry is a debit to the capital accounts of the partners and a credit to accumulated depreciation 55. The revaluation entries during partnership formation will involve real accounts only. ** The nortnare drawing account should be closed to the partner's capital account balance when he or she
true it falser

Answer 1

45. True.

Reason: When a Partners Iwthdraws and sells partnership interest to the firm and Fair Value of partnership interest is ore than recorded value.

46. False.

Reason: Revaluation Entry is: Debit office Equipment account and Credit Revaluation reserve Account and for reversal of the same reverse entry is to be followed.

47. False.

Reason: Gain on realization means the Selling Price exceeds the Carrying Value of Fixed Asset.

48.True.

Reason: Amount will be recorded at a Accounts receivable minus Allowances for doubtful debts.

49. False.

Reason: Corporation has a greater Capitalization than firm in financial terms.

50. False.

Reason: The final credit balance of the Income Summary Account means the result of operations is a Net Profit.

51. True.

Reason: investment can be in cash form as well as in non-cash form.

52. False.

Reason: Admission of a new partner always has an effect on Capitalization.

53. False:

Reason: Partnership Firm has the Characteristics of a Mutual agency and unlimited liability but not the unlimited life. It has a limited life. Moreover, if it's an LLP then it has a limited liability also.

54. False.

Reason: The appropriate entry id Debit Revaluation account and Credit Fixed assets account.

55. false.

Reason: Revaluation entries involve a Real account that is Asset account and a Nominal account that is a Revaluation accout.