Question

1-A, B and C are partners in ABC partnership with capital balances of KD 120,000, KD 80,000, and KD 50,000 respectively. The income distribution ratio between A, B and C is 5:3:2. Partner C withdraws from the partnership and receives a cash payment of KD 60,000 from the partnership. The capital of partner A after withdrawal of C is:

Select one:

a. KD 116,875

b. KD 113,750

c. Another amount

d. KD 76,250

2-Agency theory explains the relationship between a company and all individuals who can affect or are affected by the achievements of an organization’s objectives

Select one:

a. True

b. False

3-Ahmed and Lama formed AL partnership. Ahmed invested cash of KD 6000, Accounts Receivable of KD 80,000, an Allowance for Doubtful Accounts of KD 12,000; and Building at a cost of KD 50,000, its Accumulated depreciation is KD 15,000. Lama contributed cash of KD 15,000, Equipment at cost of 72,000 with mortgage of KD 10,000, Accounts payable of KD 3,000, and Land at a cost of 45,000. Ahmed and Lama agreed that the fair market value of the Building is KD 40,000, and the fair value of the Equipment is KD 65,000. Based on the above, what amount should be recorded in Lama capital account:

Select one:

a. Another amount

b. KD 114000

c. KD 102000

d. KD 112000​

Answer 1

Answer:

1-a ,2-a ,3-c ,4-a

Explanation:

kd116,875 , true , kd 114000